The Russell 2000, which tracks the performance of small and mid-cap stocks, reached a new all-time high on Thursday, January 8. Analysts view the move as an important signal for economic growth and see favorable prospects for smaller companies.

Russell 2000 hits another all-time high in 'broadening out of the market'

NioCorp Developments Ltd.

Shares of NioCorp Developments, which is engaged in exploration and development of mineral deposits in North America, have the potential to rise about 35%, Freedom Capital Markets analyst&nbsp;Vitaly Kononov argued in a recent initiation report on the company. He attributes the upside to long-term demand for critical minerals in the U.S. and progress at NioCorp’s flagship project, which is moving into the construction phase.

Freedom initiates on U.S. rare-earth miner NioCorp, sees 35% upside

Frontier Developments plc

Ubisoft Entertainment SA

Remedy Entertainment Oyj

Video games remain one of the fastest growing categories in the entertainment industry. According to Bloomberg Intelligence estimates, total global sales of gaming companies exceeded $183 billion in 2024. Analysts expect the upward trend to continue amid structural technological shifts, including the development of cloud gaming, the use of AI tools in game development, and the emergence of new gaming platforms.

How to make money on small caps in the gaming sector

Vertical Aerospace Ltd.

Archer Aviation Inc.

In a coverage initiation report, William Blair <a href="https://www.williamblair.com/News/Vertical-Aerospace-Ltd-Initiation">says</a>&nbsp;investors should buy shares of UK air taxi developer Vertical Aerospace, which has a <a href="https://www.marketscreener.com/news/william-blair-initiates-vertical-aerospace-at-outperform-ce7e59dcdd89f220">market capitalization</a> of about $622 million. The company has one of the largest disclosed order books in the industry, a strategic European footprint, and in-house battery development – advantages that most competitors lack, according to William Blair.

William Blair initiates on air taxi developer Vertical with 'outperform' 

Ventyx Biosciences, Inc.

Eli Lilly and Company

Shares of Ventyx Biosciences, a small-cap developer of anti-inflammatory drugs, jumped nearly 70% in early trading on Wednesday, January 7, after the <i>Wall Street Journal</i> <a href="https://www.wsj.com/health/pharma/eli-lilly-nears-deal-for-biotech-ventyx-3bc666d2">reported</a>&nbsp;that Eli Lilly is in talks to acquire the biotech.

Small biotech Ventyx soars 70% amid 'advanced talks' with Eli Lilly to be acquired

SoundHound AI, Inc.

Three months ago it said the stock was too rich after meme rally

Motley Fool says SoundHound AI is a 'buy' now after recent correction

Flotek Industries, Inc.

Core Laboratories Inc.

Helix Energy Solutions Group, Inc.

Par Pacific Holdings, Inc.

On January 3, 2026, the US <a href="https://oninvest.com/article/ssa-zahvatili-maduro-posle-udarov-po-venesuele-onlajn">conducted</a> a military operation in Venezuela called "Absolute Resolve," during which the country's president, Nicolas Maduro, was captured. This move by Washington effectively ended months of escalation, accompanied by a naval blockade of Venezuelan oil tankers and accusations of the regime's involvement in drug trafficking.

Flotek, Core Lab, Helix: which small-cap stocks benefited after the overthrow of the Venezuelan government


Cardiff Oncology, Inc.

Shares in Cardiff Oncology could rise more than fourfold from current levels, according to <a href="https://dashboard.channelchek.com/wp-content/uploads/pdf/CRDF_20260105_27958.pdf">Noble Capital Markets</a>, which has initiated coverage of the biotech. Cardiff is developing a therapy targeting a form of colorectal cancer for which many standard treatments are ineffective.

Noble initiates on Cardiff Oncology with fourfold expected upside

LifeMD, Inc.

Novo Nordisk A/S

The telehealth platform will thus expand its partnership with Novo Nordisk

LifeMD to offer Novo Nordisk's Wegovy in oral form; shares jump

Sirius XM Holdings Inc.

Radio broadcaster Sirius XM Holdings is among the weakest-performing assets in Warren Buffett’s Berkshire Hathaway portfolio over the years, but 2026 could bring better returns for shareholders, according to <a href="https://www.fool.com/investing/2026/01/04/where-will-sirius-xm-holdings-be-in-1-year/">Billy Duberstein, an analyst at the Motley Fool</a>. <a href="https://finance.yahoo.com/quote/SIRI/">Sirius XM stock</a> is trading at a third of its value before the pandemic. Berkshire, however, has not reduced its exposure to the company. On the contrary, it has continued to increase its stake.

Motley Fool flags potential turnaround for Sirius, cites Berkshire's continued faith

In 2025, while U.S. tech megacaps continued to push to new highs, exchange-traded funds focused on small caps – particularly outside of the U.S. – delivered standout returns. According to BofA, global equities outperformed U.S. peers by more than 15 percentage points – the widest gap in 30 years. Much of that outperformance came from ETFs tracking small caps outside of the U.S.

Foreign, cheap, cyclical: Which small-cap ETFs led gains in 2025?


Xperi Inc.

Meridian Holdings Inc.

Allot Ltd.

Electromed, Inc.

Millrose Properties, Inc.

Unitil Corporation

MP Materials Corp.

Wall Street <a href="https://oninvest.com/article/eto-vyigrys-barron-s-nazval-drajvery-rosta-small-cap-kompanij-v-2026-godu">expects</a>&nbsp;the macroeconomic backdrop in 2026 to be supportive for small and mid caps, with markets increasingly pricing in a so-called Goldilocks scenario: steady economic growth without overheating, a gradual normalization of inflation, and continued support for the labor market under a neutral-to-soft policy stance from the Fed, according to analysts at Freedom Broker. They prepared for&nbsp;<i>Oninvest</i>&nbsp;a list of eight small- and mid-cap stocks investors should pay attention to in 2026.

Small caps