Small-cap stocks are finally showing signs of life. If you’re wondering whether this is a good time to invest in small-cap stocks, the answer is YES for investors looking beyond the short term. Market signals, expert commentary, and recent stock performance all point toward a potential resurgence in small caps.
In August 2025, CNBC reported that investors are starting to shift away from the “Magnificent 7” mega-cap tech stocks. Small-cap stocks, many of which are trading at steep discounts, are beginning to rally as capital rotates into overlooked sectors. With interest rates expected to fall later this year, the setup for small-cap performance is gaining momentum.
At Bear Creek Capital, we help accredited investors stay ahead of these trends. Our investment membership offers exclusive access to company leadership, private investor events, and ongoing market intelligence. We focus on delivering timely insights that help our community make smarter investment decisions in the small-cap and micro-cap space.
Small-cap stocks are currently undervalued compared to large caps. That valuation gap presents opportunities for investors who know where to look. Many of these companies are trading well below their historical averages despite having solid fundamentals.
A falling interest rate environment is likely to help small caps more than large caps. Smaller companies often carry more debt. When borrowing costs drop, profitability improves. At the same time, reshoring trends and renewed interest in domestic production are creating tailwinds for small companies that operate in niche sectors.
Raymond Oliver, CEO of Bear Creek Capital, explains it clearly.
“We’re seeing indicators that small caps are positioned for a strong comeback, especially those with real earnings and clean balance sheets.”
Josh Brown, CEO of Ritholtz Wealth Management and a regular CNBC contributor, recently commented on the growing opportunity in small-cap stocks. He highlighted the potential benefits of a “non-recessionary cutting cycle” from the Federal Reserve, which could support both small caps and financials.
He pointed specifically to regional banks showing technical breakouts. One example he cited was Huntington Bancshares, which is forming a bullish inverse head and shoulders pattern. Brown emphasized that small-cap stocks with good valuations and strong profitability have real long-term performance potential.
The “Magnificent 7” stocks – Apple, Amazon, Microsoft, Alphabet, Nvidia, Tesla, and Meta have dominated market performance for the last several years. In 2025, that dominance is beginning to fade. CNBC recently reported that investors are shifting capital toward small caps as these mega-cap tech names start to underperform.
This kind of market rotation often signals a broadening of leadership. When large-cap growth slows down, investors begin looking for returns in less crowded areas. Small-cap stocks, especially those with strong fundamentals, become more attractive during this shift.
Here are three examples of small-cap stocks making headlines for their performance in 2025.
BitMine has been one of the most explosive small-cap performers of the year. As of September 2025, BMNR is trading around $50.50 per share. It has gained over 515 percent year to date and more than 466 percent over the past 12 months. The company holds approximately $10.77 billion in crypto and cash assets, making it a standout in the speculative growth category.
BMNR is a prime example of what can happen when a small-cap stock aligns with high-demand sectors and strong asset backing. While highly volatile, it has shown what kind of upside exists in this space.
Venu is a small-cap stock in the consumer and restaurant sector. As of September 2025, VENU is trading at approximately $12.77 with a market cap of roughly $477 million. The company has shown steady growth throughout the year as it expands into new domestic markets and improves its balance sheet.
Its recent positive press and financial momentum reflect the broader opportunity in consumer-facing small-cap names. While not as flashy as tech, these companies can offer stability and upside for long-term investors.
Comstock Inc. is a resource-based small-cap that has had a volatile history. As of this writing, LODE trades at $3.67. It hit a 52-week low of $1.67 and a high of $10.10, with a recent surge of over 50 percent in just one week. While LODE is still down year over year, the recent upward movement suggests renewed investor interest.
This kind of volatility is typical in small caps, but it also shows how quickly momentum can build. Investors who understand technical signals and entry points are better positioned to capitalize on this kind of price action.
Small caps offer greater upside potential and pricing inefficiencies that large caps rarely do. For accredited investors with a longer investment horizon, the reward may outweigh the risk. These companies often get little analyst coverage, which allows for more opportunity if you do the work.
Raymond Oliver puts it simply.
“Accredited investors aren’t afraid of volatility. They use it. And right now, small caps offer exactly the kind of inefficiencies we like to see.”
The current market environment favors this type of strategic thinking. If you can identify quality companies with scalable business models and reasonable debt loads, now may be the time to invest in small cap stocks.
We help accredited investors gain access to under-the-radar companies and real-time market intelligence. We host private investor events in West Palm Beach and Pompano Beach, along with virtual meetings and ongoing Zoom briefings.
Our events bring company executives and investors together in a first-class networking environment. These conversations are designed to generate real insight, not just surface-level presentations. We focus on opportunities that are often missed by mainstream coverage but have strong upside potential.
Membership in our investor community gives you access to timely research, peer discussions, and early-stage opportunities across the small-cap and micro-cap space.
To find out how you can join Bear Creek Capital today, click here.
What makes now a good time to invest in small-cap stocks?
Valuations are low, interest rates are expected to fall, and capital is rotating out of mega-cap tech. These conditions make small caps more attractive.
How can accredited investors get better access to small-cap opportunities?
Joining Bear Creek Capital provides early access to company leadership, investor events, and consistent market updates tailored to small and micro-cap stocks.
Are small-cap stocks more volatile than large caps?
Yes. They can move more dramatically in both directions, but that volatility also offers higher upside for those who know what to look for.
What happens at Bear Creek Capital investor events?
We host private, invitation-only meetings that connect public companies with accredited investors. These events allow for direct Q&A, relationship-building, and deeper due diligence.
Raymond Oliver is the CEO of Bear Creek Capital LLC and has led the firm since December 2005. With over 30 years in the financial industry, he brings deep expertise in strategic investing, business development, and public market dynamics. Before founding Bear Creek Capital, he worked in investor relations at Action Products. His market insights guide accredited investors toward informed decisions in small-cap and micro‑cap opportunities.
Disclaimer: This information is for general knowledge and should not be considered financial advice. Before making any investment decisions, consult with a qualified financial advisor. From time to time, Bear Creek Capital LLC may hold positions in some of the companies mentioned in our articles.