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21 Best-Performing Small-Cap Stocks for July 2026

Back to libraryUnknown authorJul 18, 2026
21 Best-Performing Small-Cap Stocks for July 2026

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21 Best-Performing Small-Cap Stocks for July 2026

Small-cap stocks can bring diversification and higher growth potential — albeit with higher risks — to a portfolio. Here's what to know before investing.

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Investors salivate over the biggest companies in the market — the likes of Apple, Google and Amazon — but where’s the love for the market’s perpetual underdogs: small-cap stocks?

Investors salivate over the biggest companies in the market — the likes of Apple, Google and Amazon — but where’s the love for the market’s perpetual underdogs: small-cap stocks?

When these investments do get some time in the limelight, it’s often for unflattering reasons — violent price swings or fraudulent activity, for example. Small caps can diversify portfolios and bring higher growth potential — albeit with higher risks.

When these investments do get some time in the limelight, it’s often for unflattering reasons — violent price swings or fraudulent activity, for example. Small caps can diversify portfolios and bring higher growth potential — albeit with higher risks.

What are small-cap stocks?

What are small-cap stocks?

Small-cap stocks are company shares with market values between $250 million and $2 billion, though that range isn't universal

Small-cap stocks are company shares with market values between $250 million and $2 billion, though that range isn't universal FINRA. Market Cap Explained. . "Cap" is shorthand for market capitalization, or the total number of a company’s shares multiplied by its current stock price.

The definition of small when it comes to stocks is subjective. The Russell 2000 Index, the first benchmark of small-cap stocks, is the best-known gauge. The market caps of its member companies currently range from about $240 million to $6 billion. The other major indexes tracking these stocks — the Standard & Poor’s SmallCap 600 and the MSCI USA Small Cap Index — include U.S. companies with even broader ranges of market caps.

The definition of small when it comes to stocks is subjective. The Russell 2000 Index, the first benchmark of small-cap stocks, is the best-known gauge. The market caps of its member companies currently range from about $240 million to $6 billion. The other major indexes tracking these stocks — the Standard & Poor’s SmallCap 600 and the MSCI USA Small Cap Index — include U.S. companies with even broader ranges of market caps.

Small-cap stocks vs. mid-cap and large-cap stocks

Small-cap stocks vs. mid-cap and large-cap stocks

Again, definitions can vary, but here is the breakdown of small-cap stocks versus mid-cap and large-cap stocks, according to the Financial Industry Regulatory Authority (FINRA):

Again, definitions can vary, but here is the breakdown of small-cap stocks versus mid-cap and large-cap stocks, according to the Financial Industry Regulatory Authority (FINRA):

Small-cap stocks: Public companies valued at $250 million to $2 billion.

Small-cap stocks: Small-cap stocks: Public companies valued at $250 million to $2 billion.

Mid-cap stocks: Companies whose market capitalization is more than $2 billion but less than $10 billion.

Mid-cap stocks: Mid-cap stocks: Companies whose market capitalization is more than $2 billion but less than $10 billion.

Large-cap stocks: Companies worth $10 billion or more. 

Large-cap stocks: Large-cap stocks: Companies worth $10 billion or more. 

» MORE: Market capitalization: What it is and why it matters

» MORE: » MORE: Market capitalization: What it is and why it matters

Best small-cap stocks, ordered by one-year performance

Best small-cap stocks, ordered by one-year performance

Below is a table of the 21 best-performing stocks that are listed on major U.S. exchanges and have a market cap under $10 billion, ordered by one-year returns.

Below is a table of the 21 best-performing stocks that are listed on major U.S. exchanges and have a market cap under $10 billion, ordered by one-year returns.

» Want to start trading? Here's our list of the best platforms for day trading.

» Want to start trading? Here's our list of the best platforms for day trading. » Want to start trading? Here's our list of the best platforms for day trading .

The best-performing small cap stock by one-year return is Eloxx Pharmaceuticals Inc (ELOX), which is up 1,362,627.25%.

The best-performing small cap stock by one-year return is Eloxx Pharmaceuticals Inc (ELOX), which is up 1,362,627.25%.

The best-performing small cap stock by one-year return is Eloxx Pharmaceuticals Inc (ELOX), which is up 1,362,627.25%.

Ticker

Ticker

Company

Company

Performance (Year)

Performance (Year)

ELOX

ELOX

Eloxx Pharmaceuticals Inc

Eloxx Pharmaceuticals Inc

1,362,627.25%

1,362,627.25%

AXTI

AXTI

AXT Inc

AXT Inc

3,213.93%

3,213.93%

NVA

NVA

Nova Minerals Corp

Nova Minerals Corp

1,947.83%

1,947.83%

SHAZ

SHAZ

SharonAI Holdings Inc

SharonAI Holdings Inc

1,391.67%

1,391.67%

BW

BW

Babcock & Wilcox Enterprises Inc

Babcock & Wilcox Enterprises Inc

1,298.95%

1,298.95%

ERAS

ERAS

Erasca Inc

Erasca Inc

1,235.96%

1,235.96%

NUAI

NUAI

New Era Energy & Digital Inc

New Era Energy & Digital Inc

1,187.13%

1,187.13%

ANRO

ANRO

Alto Neuroscience Inc

Alto Neuroscience Inc

1,085.59%

1,085.59%

RLMD

RLMD

Relmada Therapeutics Inc

Relmada Therapeutics Inc

994.79%

994.79%

CLYM

CLYM

Climb Bio Inc

Climb Bio Inc

990.33%

990.33%

KOD

KOD

Kodiak Sciences Inc

Kodiak Sciences Inc

929.33%

929.33%

SPRB

SPRB

Spruce Biosciences Inc

Spruce Biosciences Inc

921.70%

921.70%

SLGL

SLGL

Sol-Gel Technologies Ltd

Sol-Gel Technologies Ltd

910.64%

910.64%

EQ

EQ

Equillium Inc

Equillium Inc

885.71%

885.71%

ALMS

ALMS

Alumis Inc

Alumis Inc

810.93%

810.93%

QTTB

QTTB

Q32 Bio Inc

Q32 Bio Inc

780.56%

780.56%

STTK

STTK

Shattuck Labs Inc

Shattuck Labs Inc

765.62%

765.62%

OPTX

OPTX

Syntec Optics Holdings Inc

Syntec Optics Holdings Inc

756.20%

756.20%

OVID

OVID

Ovid Therapeutics Inc

Ovid Therapeutics Inc

756.01%

756.01%

NBTX

NBTX

Nanobiotix ADR

Nanobiotix ADR

743.92%

743.92%

CELC

CELC

Celcuity Inc

Celcuity Inc

740.60%

740.60%

Source: Finviz. Data is current as of July 1, 2026, and is intended for informational purposes only.

Source: Finviz. Data is current as of July 1, 2026, and is intended for informational purposes only. Make sense of the markets with The Nerdy Investor A weekly wrap on what's moving markets, plus two monthly deep-dives on how to improve your investing, straight to your inbox. Subscribe for free

Small caps historically have a relatively high correlation — meaning they tend to move in lockstep — with large-cap stocks. But which group is performing better than the other over a given time frame fluctuates regularly, based on factors such as macroeconomic growth and politics.

Small caps historically have a relatively high correlation — meaning they tend to move in lockstep — with large-cap stocks. But which group is performing better than the other over a given time frame fluctuates regularly, based on factors such as macroeconomic growth and politics.

Why small-cap stocks are risky

Why small-cap stocks are risky

As small-cap businesses expand, their stocks offer a higher growth potential compared with larger companies. But that comes with a greater risk of volatility — including more (and bigger) fluctuations in stock prices and earnings reports. This trade-off is known as the risk premium.

As small-cap businesses expand, their stocks offer a higher growth potential compared with larger companies. But that comes with a greater risk of volatility — including more (and bigger) fluctuations in stock prices and earnings reports. This trade-off is known as the risk premium.

» MORE: Diversification: An easy way to reduce your investing risk

» MORE: » MORE: Diversification: An easy way to reduce your investing risk

Small-cap stocks can also be more fertile territory for fraudulent activity.

Small-cap stocks can also be more fertile territory for fraudulent activity.

Why small-cap stocks are appealing

Why small-cap stocks are appealing

The sheer number of small-cap stocks means there’s a plethora of options for investing in them. What’s more, the proliferation of exchange-traded funds has made it easier to buy a basket of stocks with a specific investing strategy — growth or value, for example. Small caps can be an under-appreciated — or even overlooked — way to add diversification to your portfolio.

The sheer number of small-cap stocks means there’s a plethora of options for investing in them. What’s more, the proliferation of exchange-traded funds has made it easier to buy a basket of stocks with a specific investing strategy — growth or value, for example. Small caps can be an under-appreciated — or even overlooked — way to add diversification to your portfolio.

Looking for small-cap ETFs instead? Check out which ones are performing the best

Looking for small-cap ETFs instead? Check out which ones are performing the best

Brokerage firms

Brokerage firms

Brokerage firms
NerdWallet rating  Learn More

on Charles Schwab's website

NerdWallet rating  Learn More

on E*TRADE's website

NerdWallet rating  Learn More

on Vanguard's website

NerdWallet rating  Learn More

on Fidelity's website

Why small-cap stocks are not that different

Why small-cap stocks are not that that different

It’s important to know what makes small-cap stocks distinctive, but you shouldn’t necessarily obsess over the differences. They have a lot in common with the others that might be in your portfolio: They trade on exchanges, their prices are published intraday, Wall Street analysts write research reports about them, and by virtue of being public, these companies must disclose a wealth of information to investors.

It’s important to know what makes small-cap stocks distinctive, but you shouldn’t necessarily obsess over the differences. They have a lot in common with the others that might be in your portfolio: They trade on exchanges, their prices are published intraday, Wall Street analysts write research reports about them, and by virtue of being public, these companies must disclose a wealth of information to investors. NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. FINRA. Market Cap Explained. About the author Anna-Louise Jackson Anna-Louise Jackson Anna-Louise Jackson is a former investing and retirement writer for NerdWallet. Her work has been featured by Bloomberg, CNBC, The Associated Press and more. See full bio.

Helpful resources

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