7 Small-Cap Stocks on My Radar as Market Rotation Gains Momentum
I'm focused on increasing exposure to names I think have the best shot at year-end gains.
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Rotational action into small-cap stocks continues on Thursday. Overall market breadth is slightly negative, but the Russell 2000 (IWM) is up 0.5% while the senior indexes are mixed. Meta Platforms (META) has jumped over 4% on news that it is cutting its metaverse spending, helping keep the Magnificent Seven in the green despite weakness in Alphabet (GOOGL) , Amazon (AMZN) , and Apple (AAPL) .
I’m primarily focused on positioning and making adjustments as I increase exposure to names that I think have the best shot at some year-end gains. I need to do much more work, but here are a few names that I’m focused on right now:
Ocular Therapeutix (OCUL) is developing drugs for eye diseases. It is making a sizable move on Thursday as it moves out of a recent trading range. Clear Street recently raised its target to $21 from $18.
EOS Energy (EOSE) is developing new low-cost battery storage systems. It just recently started ramping up revenues. It held support at $13 and is trading back over the 50-day moving average.
Emergent BioSolutions (EBS) is a name I’ve mentioned several times. It is involved in manufacturing vaccines for public health and rare diseases. It is a turnaround play and has been posting some great numbers.
SoundHound AI (SOUN) is an AI play focused on things such as fast-food ordering systems and auto controls. The stock has been languishing at support around $11 and is finally turning up and moving over its 200-day simple moving average.
Delcath Systems (DCTH) has an innovative treatment for liver cancer that involves cycling blood outside the body. This is a name I think has great potential in 2026, and I will be discussing it in further detail in the future.
AST SpaceMobile (ASTS) is a satellite internet play. It had a deep pullback recently but has moved sharply higher over its 50-day simple moving average. I don’t want to chase it here, but I will be looking for a remount soon.
Harrow (HROW) is a name I highlighted in the quarterly TheStreet Pro video. It has struggled but has now turned up and is gaining momentum. The company is positioning itself as the Amazon of ophthalmology with a wide array of offerings.
There are quite a few other interesting names on my watch list, and I’ll be trading them aggressively as the rotational action into smaller stock picks up steam.
At the time of publication, Rev Shark was long OCUL, EBS EOSE, SOUN, DCTH, ASTS, HROW and GOOGL.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider many of these names to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
