Small-cap stocks in the Russell 2000 index often fly under the radar, but they can offer a big upside for investors. While they may be more volatile than their large-cap peers, small caps can deliver outsized returns when backed by strong fundamentals. From the index, we’ve selected Summit Therapeutics (SMMT), Matador Resources (MTDR), and FTAI Aviation (FTAI), all rated Strong Buys by Wall Street analysts. Let’s dive into the details.
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Summit Therapeutics
Summit Therapeutics Inc. is a biopharmaceutical company focused on developing innovative cancer treatments. Despite doubling over the past year on optimism around its lung cancer drug ivonescimab, SMMT stock has taken a sharp hit recently following mixed clinical trial results. While the drug, when paired with chemotherapy, cut the risk of disease progression or death by 48%, the market reacted to the lack of clear overall survival benefits.
Last week, Truist Financial and Wells Fargo reiterated their Buy ratings on SMMT stock. Notably, analyst Mohit Bansal from Wells Fargo predicts a growth rate of 65% from current levels. Interestingly, all 11 analysts who rated the stock gave it a Buy. Taken together, Summit Therapeutics’ stock forecast of $37 implies an upside of about 103%.
Matador Resources
Matador Resources is an energy firm specializing in the exploration, development, and production of oil and natural gas.
Last week, four-star-rated analyst Leo Mariani at Roth MKM reiterated his Buy rating on MTDR stock, projecting a potential upside of over 50%. Overall, 13 out of 15 analysts currently covering the stock have issued Buy recommendations. Meanwhile, the average Matador Resources share price target of $62.93 suggests a 46.31% upside from current levels.
FTAI Aviation
FTAI Aviation, previously known as Fortress Transportation and Infrastructure Investors LLC, provides full-service aftermarket maintenance and power solutions for widely used commercial jet engines. Year-to-date, FTAI stock has fallen by 19%.
Overall, FTAI stock has unanimous Buy recommendations from all nine analysts covering it. Meanwhile, FTAI’s average price target of $177.9 suggests a potential upside of 52% from current levels.
