4 Small-Cap Stocks Quietly Crushing It This Year - And They're Not Done Yet

Small-cap stocks, represented by the iShares Russell 2000 ETF, have gained 5.4% year-to-date and extended their outperformance against the S&P 500 to 8 consecutive days, the longest streak since 2019. Select Water Solutions ranks fourth despite near-term pressure, with Q3 revenue down 13.2% year-over-year but strategic infrastructure investments and lithium extraction facility development showing promise. Gorman-Rupp, a pump manufacturer, achieved record full-year 2025 net sales of $682.4 million with record net income of $53.0 million and adjusted EPS up 22%. The company benefits from increased demand in data center construction across fire suppression, industrial, and OEM pump segments.

"Select Water Solutions earns the fourth spot because near-term fundamentals remain under pressure despite a strong price move. Q3 2025 revenue came in at $322.2 million, down 13.2% year-over-year and 11.5% sequentially. Net income fell to $2.3 million from $18.8 million a year earlier, and operating income came in at $1.9 million. Free cash flow was −$23.5 million, driven by capital expenditures of $91.1 million as the company builds out infrastructure."

"Gorman-Rupp is a pump manufacturer with one of the more compelling small-cap fundamental stories of the past year. Full-year 2025 net sales reached a record $682.4 million, up 3.4% year-over-year, with record net income of $53.0 million and adjusted EPS of $2.14, a 22% increase. Q4 adjusted EPS of $0.55 beat the $0.47 estimate by roughly 17%."

"iShares Russell 2000 ETF is up 5.4% year-to-date, and per Reddit's investing communities, small caps just extended their outperformance streak against the S&P 500 to 8 consecutive days, the longest such run since 2019. The four stocks below were ranked on revenue growth, earnings beat magnitude, margin expansion, forward outlook, and balance sheet trajectory."

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