Top 5 best performing small-cap US stocks in 2024

US stock market investors have had a dream year.

The three major indexes are set to finish the year just shy of record highs, with the S&P 500 and Dow up over 25% and 14%, respectively, marking their best performance since 2021.

The tech-heavy Nasdaq has risen more than 31%.

However, some smaller stocks have also had a blockbuster year.

The S&P 600 small-cap index saw some stocks giving returns of over 200%.

The S&P SmallCap 600 is designed to track the small-cap segment of the US equity market.

To be included, companies must have an unadjusted market cap between $1.0 billion and $6.7 billion, and a float-adjusted market cap that is at least 50% of the unadjusted minimum market cap threshold.

Here are the top 5 best-performing stocks in the index

Adma Biologics

The number one spot goes to Adma Biologics which recorded a jump of 286% in 2024. The company has a market cap of around $4 billion

Adma Biologics (ADMA) specializes in manufacturing human-derived immunoglobulin products that help treat individuals with primary immunodeficiency.

These products are designed for people whose bodies do not produce enough antibodies, either due to viral exposure or vaccination, to defend against illnesses such as respiratory syncytial virus (RSV).

For the quarter ending September 2024, Adma Biologics posted earnings of $0.15 per share and reported revenues of $119.84 million, an increase from the $67.28 million recorded during the same period the previous year.

The company joined the index earlier this year.

Brinker International

The stock saw a steady rise throughout the year.

Brinker International reported sales of $1,127.3 million in the first quarter of fiscal 2025, up from $1,002.0 million in the same period of fiscal 2024.

The parent company of Chili’s and Maggiano’s Little Italy has also caught the eye of top analysts in the past few weeks.

In December, Morgan Stanley upgraded its rating from “Underweight” to “Equalweight” and raised its price target to $115, citing the successful turnaround of Chili’s, which generates nearly 90% of the company’s annual revenue.

Goldman Sachs initiated coverage with a “Buy” rating and a price target of $150.00, highlighting the continued strength of Chili’s as Brinker’s dominant revenue source.

Lumen Technologies Inc

Lumen Tech stock had a quiet first half at the bourses. But in the second half of the year, the stock gained close to 400%.

The jump in the stock price has been due to the company shifting its focus toward AI and technology services, highlighted by recent contract wins with major tech companies such as Microsoft, Meta, Alphabet, and Amazon.

These deals have helped drive a notable increase in Lumen’s share price this year, despite a decline in revenue and a wider net loss in the most recent quarter compared to the previous year.

The company has also reportedly initiated a process to sell its consumer fiber operations.

This move is part of Lumen’s strategy to shift away from its legacy mass markets business and focus on capitalizing on the growth of artificial intelligence.

The sale of the fiber unit is also viewed as an effort to address Lumen’s huge debt, which stood at $18.1 billion as of September 30.

Hims & Hers Health Inc

Hims and Hers is an online platform that connects patients with licensed healthcare professionals and provides treatments for various conditions, including hair loss and sexual wellness.

In the third quarter, the company reported revenues of $401.6 million, marking a 77% year-over-year increase. Earnings per share (EPS) of 32 cents met analyst expectations. The company now has over 2 million subscribers, with more than 50% using personalized health solutions.

Analysts remain mixed on the stock.

BofA Securities maintains its “underperform” rating on Hims & Hers Health.

TD Cowen, and Needham have a “buy” rating on the stock.

Semtech

Second on the list in Semtech with a close to 190% YTD return.

Semtech is a provider of analog and mixed-signal semiconductors, primarily used in Internet of Things (IoT) systems and cloud connectivity.

Semtech Corporation reported non-GAAP earnings of 26 cents per share for the third quarter of fiscal 2025. The company’s revenues for the quarter were $236.8 million.

The company has a market cap of around $5 billion.

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