The population of the U.S. is aging at an unprecedented rate. By 2035, there will be more people over 65 than children in the U.S., driving healthcare costs up and posing new economic challenges. Both U.S. presidential candidates, Democrat Kamala Harris and Republican Donald Trump, have proposed measures related to these issues. Yet, while an aging population is a challenge for policymakers, it presents a unique opportunity for investors. Here’s how small-cap stocks could help them to profit from this demographic shift.

Eight small-cap stocks that stand to profit from a rapidly aging U.S.

The diamond miner Diamcor Mining has announced a term-loan financing to accelerate growth in diamond processing at its primary project, the Krone-Endora mine in South Africa. The company <a href="https://www.diamcormining.com/news/diamcor-announces-term-loan-financing-to-expedite-increased-processing-at-krone-endora?utm_source=in_materials">believes</a> the short-term issues that depressed demand and prices throughout the rough diamond sector in 2024 are showing signs of improvement, and thus expects the market to rebound in 2025.

Tiffany’s diamond supplier Diamcor sees demand recovery in 2025

Shares of ProMIS Neurosciences, which makes drugs for Alzheimer’s disease and amyotrophic lateral sclerosis (ALS), <a href="https://www.nasdaq.com/market-activity/stocks/pmn?utm_source=in_materials">gained</a> more than 5% on Wednesday, October 30. This came after the company <a href="https://www.promisneurosciences.com/news-media/press-releases/detail/232/promis-neurosciences-presents-positive-data-from-pmn310?utm_source=in_materials">released</a> positive data from the earliest stage of clinical trials for its Alzheimer’s treatment. Currently, only two treatments are FDA-approved for Alzheimer’s: one jointly developed by Biogen and Eisai, and Eli Lilly’s drug.

Alzheimer’s drugmaker ProMIS gains on positive early trial data

The Motley Fool has <a href="https://www.fool.com/investing/2024/10/29/3-small-cap-stocks-that-could-trounce-the-sp-500-o/?utm_source=in_materials">highlighted</a> three small-cap stocks that could "trounce" the S&amp;P 500 over the next five years. Each of the companies offers major growth potential and could deliver substantial returns. However, the Motley Fool cautions, they may not be suitable for every investor.

Motley Fool highlights three small caps that could ‘trounce’ the S&amp;P 500 on five-year horizon

Shares of MAIA Biotechnology, a company with a market capitalization of $65 million that develops therapies for cancer, <a href="https://www.marketwatch.com/investing/stock/maia?utm_source=in_materials">surged</a> more than 8% on Tuesday, October 29, following the <a href="https://ir.maiabiotech.com/news-events/press-releases/detail/115/maia-biotechnology-announces-2-44-million-private-placement?utm_source=in_materials">announcement</a> of a private placement, which included certain insiders and is expected to raise $2.44 million.

Oncology company MAIA advances on news of private placement

Quotes on Gryphon Digital Mining, which brands itself as a carbon-neutral Bitcoin miner, <a href="https://www.marketwatch.com/investing/stock/gryp?utm_source=in_materials">soared</a> over 16% on Monday, October 28, following the company’s <a href="https://ir.gryphondigitalmining.com/news-events/press-releases/detail/34/gryphon-digital-mining-converts-debt-to-equity-to-strengthen-balance-sheet-and-increase-shareholder-equity?utm_source=in_materials">announcement</a> of a debt restructuring agreement with the crypto bank Anchorage Digital to convert about two thirds of its debt into equity, with the remaining third payable over three years, and grant the bank a board seat.

Bitcoin miner Gryphon jumps more than 16% after debt conversion announced

Quotes on PSQ Holdings, which brands itself as a marketplace for family-oriented Americans, <a href="https://www.nasdaq.com/market-activity/stocks/psqh?utm_source=in_materials">jumped</a> over 7% on Monday, October 28. This came after the company announced a raft of updates, including its payments platform launch, a $5.35 million private investment, staff cuts, and plans for achieving profitability in the near term.

‘Patriotic marketplace’ stock surges after additional share issue, payments platform launch

The Motley Fool has <a href="https://www.fool.com/investing/2024/10/26/2-small-cap-stocks-with-far-more-upside-than-any-m/">highlighted</a> two small-cap stocks, SoundHound AI and Archer Aviation, with "far more" upside than the so-called Magnificent Seven. Over the last five years, these tech giants have <a href="https://www.fool.com/investing/2024/10/26/2-small-cap-stocks-with-far-more-upside-than-any-m/">delivered</a> at least triple-digit returns to investors. However, Wall Street’s current expectations for them are more modest: Of the group, Alphabet has the highest near-term upside at 22%. The Motley Fool argues that SoundHound and Archer could offer far higher returns.

The Motley Fool highlights two small caps with ‘far more’ upside than the Magnificent Seven

Royce Premier Fund, managed by Royce Investment Partners (founded by Wall Street <a href="https://kz.kursiv.media/2024-08-15/mrdr-royce/">legend</a> Chuck Royce), has <a href="https://www.google.com/url?q=https://www.royceinvest.com/insights/2024/4Q24/small-cap-premier-quality-strategy-3q24-update-and-outlook&amp;sa=D&amp;source=docs&amp;ust=1730128633264161&amp;usg=AOvVaw21VWbBlsI9_eSphBEG9sgz">revealed</a> which holdings contributed and detracted the most from the portfolio’s third-quarter performance. The mutual fund invests in small caps with low debt and stable cash flows. Overall, the third quarter, according to co-lead portfolio managers Lauren Romeo and Steven McBoyle, was "somewhat disappointing." In the period, the small-cap-tracking Russell 2000 index gained 9.3%, while Royce Premier Fund added just 5.4%. Despite the underperformance, Romeo and McBoyle are "very pleased" with the fund’s long-term results.

Royce Premier Fund reveals biggest third-quarter contributing and detracting stocks

Shares of low-cost carrier Spirit Airlines <a href="https://www.marketwatch.com/investing/stock/save">jumped</a> about 12% in premarket trading today, Friday, October 25, following the company’s <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001498710/57ff47af-723f-44ab-baed-d82e2771047f.pdf">announcement</a> of a planned sale of part of its fleet for approximately $519 million and forthcoming layoffs.

Spirit Airlines caps off big week with gains on announcement of aircraft sale

ImmunityBio, a biotech company developing novel cancer treatments, has been valued at $30 per share in a coverage initiation <a href="https://www.barrons.com/articles/biotech-stock-price-immunitybio-84ca43e9?mod=RTA">report</a> by EF Hutton, an investment bank. Recall that EF Hutton was known as one of the top banks for SPAC deals, including Donald Trump's Trump Media &amp; Technology Group. The bank’s target price for ImmunityBio is more than seven times the October 24 close of $4.20 per share.

EF Hutton sees over 600% upside in biotech small cap ImmunityBio

The journey of Achieve Life Sciences, a small pharmaceutical company, is a case study in persistence. Over its 33-year history, it has faced multiple clinical trial setbacks, launched just a single product (with limited commercial success), and shifted its focus and branding more than once. Today, Achieve is developing the world’s first treatment specifically for vaping addiction, which recently received "breakthrough therapy" designation from the U.S. Food and Drug Administration (FDA).

Small caps