GSK plc

RAPT Therapeutics Inc

Shares of RAPT Therapeutics, a developer of long-acting therapies for food allergies, <a href="https://finance.yahoo.com/quote/RAPT/">surged</a>&nbsp;nearly 64% in premarket trading on Tuesday, January 20, after the company <a href="https://investors.rapt.com/news-releases/news-release-details/gsk-enters-agreement-acquire-rapt-therapeutics">announced</a>&nbsp;its acquisition at a premium by pharma giant GSK.

Allergy pill developer RAPT soars on announcement of acquisition by GSK 

Forum Energy Technologies, Inc.

Array Technologies, Inc.

Harrow, Inc.

Five9, Inc.

GigaCloud Technology Inc.

Research outfit Zacks has <a href="https://www.zacks.com/featured-articles/301/best-small-cap-stocks">named</a>&nbsp;five small-cap stocks that investors should pay attention to in January, including both “buy” and “hold” ratings. According to Zacks, these stocks have been delivering earnings above Wall Street forecasts, a signal that the earnings outlook may be improving.

Zacks recommends five best small-cap stocks to buy in January 2026

Klockner & Co SE

Worthington Steel, Inc.

Shares of Kloeckner &amp; Co, one of Europe’s largest metal traders, surged in German trading on Friday, January 16, jumping 27.3% to their highest level since May 2022. The rally followed the news that U.S.-based Worthington Steel <a href="https://ir.worthingtonsteel.com/news/news-details/2026/Worthington-Steel-to-Acquire-Kloeckner--Co/default.aspx">will acquire</a> the company at a premium to the market price. The transaction looks set to reshape the North American metalworking market and position Worthington Steel as the second-largest company in the region by revenue, Noble Capital Markets <a href="https://www.channelchek.com/news-channel/worthington-steel-to-acquire-kloeckner-co-in-transformative-2-4-billion-deal">argues</a>.

German metal processor Kloeckner to be acquired by U.S. peer Worthington; shares jump

SMA Solar Technology AG

Sixt SE

thyssenkrupp nucera AG & Co. KGaA

Vossloh AG

Wacker Neuson SE

German small-cap stocks offer an opportunity to participate in the transformation of the German economy particularly in terms of mobility and green energy. German GDP is <a href="https://www.reuters.com/markets/europe/german-economy-grow-after-two-straight-years-contraction-ifw-says-2025-06-12/?utm_source=chatgpt.com%23:~:text=The%2520Leibniz%2520Institute,new%2520German%2520government.%2522">projected</a>&nbsp;to grow roughly 1.1-1.5% in 2026, a gradual recovery from the near-stagnation of 2024-2025. Fiscal support is&nbsp;channeled  through funds for decarbonization, green mobility, and infrastructure, supporting demand for rail transport, renewable energy, and low-emission equipment.

Betting on the green economy: Five interesting German small caps from Freedom24 

Quantum Computing Inc.

Rigetti Computing, Inc.

D-Wave Quantum Inc.

IonQ, Inc.

Rosenblatt Securities analyst John&nbsp;McPeake has <a href="https://www.barrons.com/articles/rigetti-quantum-computing-stocks-buy-93675ecd?gaa_at=eafs&amp;gaa_n=AWEtsqdbXTohrP-EnKqWHR-LCZ68VS4mLwbi3DYfRGKMLq1zgpcXrz5mqbAH&amp;gaa_ts=6969fb1d&amp;gaa_sig=mbcEqEooeQ6Icj1u-aO2x0KEYgp7TvDzxt23rwD7u6HbCHg77G0ZWuInBZV4vbJKdnsLpZsNjP2p8LQE9O4GPg%3D%3D">initiated</a>&nbsp;on shares of quantum computing firms Rigetti Computing and Quantum Computing Inc., opening coverage with "buy" ratings. Amid "trepidation on Wall Street," McPeake argues they already have working products that could give them a competitive advantage in the future.

Rosenblatt initiates on quantum-computing firms Rigetti and QCi at 'buy'

Planet Labs PBC

Shares of mid-cap satellite data provider <a href="https://finance.yahoo.com/quote/PL/">Planet Labs</a> climbed&nbsp;almost 6% on Wednesday, January 14, reaching a new all-time high. Over the past two days, three Wall Street analysts have <a href="https://www.marketwatch.com/investing/stock/pl/analystestimates?mod=mw_quote_tab">raised their target prices</a> for the stock, with the most bullish call implying upside of over 12% from current levels. Over the last 12 months, Planet Labs has surged more than 600%.

Space stock Planet Labs is up 600% in LTM, but Wall Street sees more upside

The Russell 2000, which tracks shares of small- and mid-cap companies, outperformed the broader U.S. market benchmark, the S&amp;P 500, for a ninth consecutive session on Wednesday, January 14. That marks the index’s longest winning streak against large caps in 25 years, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-01-13/stock-market-today-dow-s-p-live-updates?srnd=homepage-europe&amp;sref=Y0jVLcFo">reports</a>. The move reflects growing investor skepticism over the durability of artificial intelligence-driven gains, resulting in capital rotation.

Russell 2000 beats S&P 500 for ninth straight time, now the longest streak since 1990

Contango Ore, Inc.

Dolly Varden Silver Corporation

Gold exploration and production company Contango ORE and silver miner Dolly Varden Silver <a href="https://www.contangoore.com/press-release/contango-ore-and-dolly-varden-silver-announce-merger-to-create-a-new-north-american-high-grade-mid-tier-silver-gold-producer-and-developer">announced</a>&nbsp;a merger in late December. The transaction will combine their assets in Alaska and British Columbia. Below is a summary of what investors need to know about the deal, the outlook for the combined company, and its key projects.

Gold and silver combine: Breaking down the Contango ORE/Dolly Varden merger

Sun Country Airlines Holdings, Inc.

Allegiant Travel Company

Shares of <a href="https://finance.yahoo.com/quote/SNCY/">small-cap airline Sun Country</a> jumped almost 11% on Monday, January 12, to their highest level since mid-2023, after the carrier agreed to a <a href="https://ir.allegiantair.com/news/news-details/2026/Allegiant-and-Sun-Country-Airlines-to-Combine-Creating-a-Leading-More-Competitive-Leisure-Focused-U-S--Airline/default.aspx">combination</a>&nbsp;with rival Allegiant Air. The transaction is set to reshape the U.S. low-cost airline market, creating the second largest ultra-low-cost carrier behind Spirit Airlines, <i>Forbes </i><a href="https://www.forbes.com/sites/suzannerowankelleher/2026/01/12/allegiant-air-merger-sun-country/">wrote</a>.

Sun Country Airlines soars on news of combination with Allegiant

The Russell 2000 index, which tracks small-cap stocks, set a new all-time high on Monday, January 12, and outperformed the S&amp;P 500 for a seventh straight session, marking its longest winning streak since 2019, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-01-12/small-cap-stocks-post-longest-win-streak-over-s-p-500-since-2019?embedded-checkout=true">wrote</a>. <i>Barron’s </i><a href="https://www.barrons.com/articles/small-company-stocks-rally-1f64499a?gaa_at=eafs&amp;gaa_n=AWEtsqdEPhgBONFBOXARir0fRH7GxP3k5tzb2sppbPhcClif-MQfCC6EJSWD&amp;gaa_ts=69660c2c&amp;gaa_sig=qz3nYRW4R1IaY0veJi0n4pshyZJahGzpPHKuXIm65XNvjhv5EtwaMl16XEXnzRDcq6vCgglLur4XZSc3jS9PpA%3D%3D">attributed</a>&nbsp;the move in part to the so-called January effect, while analysts and money managers say the rally could have further to run.

Russell 2000 extends longest winning streak vs S&P 500 since 2019

NovaBay Pharmaceuticals, Inc.

The Oncology Institute, Inc.

Relmada Therapeutics, Inc.

Palvella Therapeutics, Inc.

Avino Silver & Gold Mines Ltd.

In 2025, small-cap stocks generally lagged their large-cap peers. While the <a href="https://finance.yahoo.com/quote/%5EGSPC/">S&amp;P 500</a>&nbsp;index rose 16.6% over the year, the <a href="https://finance.yahoo.com/quote/%5ERUT/">Russell 2000</a>, which tracks smaller companies, gained 11.1%. Some small caps, however, delivered explosive returns, with share prices rising more than 600%, notes Freedom Broker, whose screen covered companies with market capitalizations between $300 million and $2 billion.

600% and above: Freedom spotlights five small caps with super-high returns in 2025

Nebius Group N.V.

AST SpaceMobile, Inc.

However, analyst Sean Williams cautions, 'there's more to a great investment than jaw-dropping revenue growth'


Small caps