Dear Reader,
In a quiet move few people noticed...
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We're talking over a trillion dollars in spending, with a focus on AI-powered defense, surveillance, and autonomous weapons.
But here's what most investors don't realize:
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All the best,
Simmy Adelman, Publisher
Behind the Markets
Small-Cap Standouts: These 3 Stocks Rose Over 300% in 2025
Submitted by Leo Miller. First Published: 1/3/2026.
Quick Look
- While small caps as a whole generated lower returns than large caps in 2025, three interesting names bucked this narrative.
- A cancer screening company and two satellite operators saw their shares rise 300% or more.
- See where analysts are forecasting upside and understand vital considerations pertaining to smaller stocks.
In 2025, small-cap stocks underperformed. The Russell 2000 Index, which tracks 2,000 U.S. small-cap stocks, returned roughly 13% for the year — well behind the S&P 500 Index's roughly 18% total return, which tracks U.S. large-cap stocks.
Despite that overall lag, three names stood out for exceptional performance. Below we highlight three stocks that gained 300% or more in 2025. Each began the year in small-cap territory but, after their gains, has moved into mid-cap status.
GRAIL Catapults on Early Cancer Detection Enthusiasm
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Healthcare stock GRAIL (NASDAQ: GRAL) climbed roughly 380% in 2025. Its market capitalization expanded from well under $1 billion to about $3.3 billion. GRAIL's primary product is the Galleri multi-cancer early detection test.
Early detection greatly improves cancer survival rates, driving investor interest in Galleri. Only about five cancer types have established screening programs, yet roughly 70% of cancer deaths arise from other types. Galleri is designed to detect more than 50 cancer types. In a recent study, GRAIL reported that adding Galleri to traditional screening increased early cancer detection by more than sevenfold.
Currently, Galleri's revenue is largely from out-of-pocket payments. GRAIL expects to submit a Premarket Approval (PMA) application to the U.S. Food and Drug Administration in the first quarter of 2026. If approved, commercial insurers would be far more likely to cover the test, opening a substantial new sales channel. That potential approval is a major driver of investor enthusiasm.
The MarketBeat consensus price target of $97.50 reflects analysts' optimism and implies about 14% upside from current levels.
PL Blasts Off, Combining AI with Geospatial Imagery
Planet Labs PBC (NYSE: PL) posted a huge 2025, with shares rising just under 390%. Planet operates a constellation of satellites that collect medium- to high-resolution Earth imagery. By applying artificial intelligence to that data, the company helps customers make decisions on issues ranging from agriculture to defense. Planet generates revenue through subscriptions to its cloud-based platform and satellite services.
Demand is materializing, particularly from government customers. Its Dec. 10 earnings report sent shares up 35% in one day, with defense and intelligence revenue rising more than 70%. Planet reported a backlog of about $735 million — roughly 2.6 times its last 12 months' revenue of $282 million — which supports a path to meaningful growth. The company also recorded positive free cash flow for the second consecutive quarter.
The MarketBeat consensus price target of $14.74 implies about 25% downside from current prices. However, the average of targets updated after the company's latest earnings report is $18.19, implying nearer to 7.7% downside. Planet Labs remains worth watching; any significant pullback could present a more attractive entry point.
Updated Targets Eye Strong Upside in VSAT After Huge 2025 Run
Last is Viasat (NASDAQ: VSAT), which gained roughly 305% in 2025 and now has a market cap near $4.7 billion. Viasat is a satellite communications company focused on internet and data connectivity for aviation, maritime and government customers, which differentiates it from other satellite plays such as AST SpaceMobile (NASDAQ: ASTS).
Viasat provides in-flight wireless connectivity to thousands of commercial and business aircraft. The U.S. government was its largest customer in fiscal 2025, accounting for 18% of revenue. (Viasat is currently in fiscal 2026.) Revenue grew just 2% last quarter, but contract awards rose 17% to nearly $1.5 billion and backlog climbed to almost $3.9 billion.
The MarketBeat consensus price target of $32.75 implies roughly 5% downside. However, analyst targets updated after Viasat's Nov. 7 earnings report average $49, suggesting about 37% upside from current levels.
GRAIL, PL, VSAT: Deep Research Is Paramount
Overall, GRAIL, Planet Labs and Viasat delivered remarkable returns in 2025. That performance is exciting, but investors should remember that smaller stocks — especially those that have run up sharply — can be highly volatile and carry elevated risk. Confidence in each company's long-term fundamentals is critical. Investors should do thorough due diligence before making any investment decisions in these names.
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