High-Growth, Undervalued Small-Cap Stocks for 2025: Hidden Gems with Strong Earnings Momentum and Low Competition

In 2025, the small-cap stock landscape is ripe with opportunities for investors seeking high-growth, undervalued companies. While macroeconomic headwinds persist, niche players in technology, energy, and healthcare are leveraging innovation and sector-specific tailwinds to outperform broader markets. Below, we analyze five under-the-radar small-cap stocks that combine strong earnings momentum with relatively low competition, offering compelling long-term potential.

1. Aeva Technologies (AEVA): Pioneering Sensor Tech for Autonomous Systems

Aeva Technologies (AEVA) has surged 197.3% year-to-date, driven by its cutting-edge sensor technology for autonomous vehicles and industrial robotics, according to a
MarketBeat profile. The company plans to triple revenue by 2026, capitalizing on the $1.2 trillion global autonomous vehicle market noted in the same MarketBeat profile. However, AEVA's valuation metrics tell a mixed story: it trades at a forward price-to-sales (P/S) ratio of 33.45 and a negative P/E ratio of -2.73, per
StockAnalysis statistics, reflecting ongoing losses. Despite this, its strategic focus on 4D imaging radar—a critical component for L4/L5 autonomous systems—positions it to benefit from a sector projected to grow at 25% annually (the MarketBeat profile also highlights this sector outlook).

Competitive Landscape: AEVA faces competition from established players like Visteon (VC) and Adient (ADNT), which have higher profitability and institutional ownership, as shown on the MarketBeat profile. Yet, AEVA's proprietary sensor technology and partnerships with automotive OEMs provide a moat in a sector where software-defined vehicles are becoming the norm. Analysts project a 37% upside to $20.80, citing its R&D pipeline and market positioning (StockAnalysis statistics provide the analyst summary).

2. Climb Global Solutions (CLMB): Scaling in IT Distribution

Climb Global Solutions (CLMB), a value-added IT distribution company, has delivered 33.1% annual EPS growth over five years, according to
Siblis Research data. Its 2025 earnings estimate of $4.55 per share reflects robust demand for enterprise software and cloud solutions (this estimate is also reported in the Siblis Research data). However, CLMB's valuation appears stretched: a forward P/E of 23.77 and a P/S ratio of 1.03, both above industry averages noted in the
Intellectia valuation. The company's PEG ratio of 2.01 suggests its growth does not justify its premium pricing (this PEG observation references the StockAnalysis statistics cited earlier).

Competitive Landscape: CLMB operates in a crowded IT distribution sector, competing with firms like Tech Data and Ingram Micro. While its 28.4x P/E ratio exceeds the industry average of 23.9x (see the
Simply Wall St valuation for comparative metrics), its strong gross margins and expanding client base in mid-market enterprises could sustain growth. Investors should monitor free cash flow yields, which currently stand at 2.3%—below historical averages (Intellectia valuation notes the cash flow context).

3. AudioEye (AEYE): Accessibility Tech with a Premium Valuation

AudioEye (AEYE) has surged 211.1% year-to-date, leveraging its cloud-based accessibility solutions for digital platforms (this performance aligns with sector earnings trends reported in Siblis Research data). Its 2025 earnings estimate of $0.69 per share aligns with a roughly 15.77 P/E ratio, which—while high—is justified by a 102% premium to a 5-year P/B average of 10.54 reported in market commentary. The company's dominance in a niche market—ensuring digital compliance with ADA standards—creates a defensible position as regulatory scrutiny intensifies (sector context appears in the Siblis Research data).

Competitive Landscape: AEYE's primary competitors in the application software sector trade at an average P/E of 57.31, suggesting its 15.77 multiple is relatively attractive (the comparative multiples derive from earlier StockAnalysis statistics). However, the sector's high valuations mean AEYE's growth must outpace peers to avoid overvaluation risks.

4. Energy Fuels (UUUU): Uranium's Green Energy Play

Energy Fuels (UUUU) is poised to capitalize on the uranium renaissance, with fiscal 2026 revenue expected to grow roughly 250% according to market commentary on uranium demand (this outlook is discussed in the MarketBeat profile cited for AEVA). The company's elevated P/B ratio reflects its asset-heavy model and the sector's long-term demand from nuclear energy's role in decarbonization (StockAnalysis statistics provide the asset and valuation context). While UUUU's TTM P/E is effectively 0.00 due to recent losses (StockAnalysis statistics report the trailing P/E), its low production costs and exclusive access to U.S. uranium reserves create a compelling value proposition (the MarketBeat profile discusses the supply-side dynamics).

Competitive Landscape: UUUU operates in a fragmented market with limited domestic producers, giving it pricing power as global demand for uranium rises. The company's premium to book value is typical for resource plays with high growth potential (Intellectia valuation discusses typical resource-play valuations).

5. Inhibikase Therapeutics (IKT): Biotech's Neurodegenerative Hope

Inhibikase Therapeutics (IKT) has doubled in 2025 following positive clinical trial data for its Parkinson's disease treatment, as summarized on the
Public.com analysis. Despite a -1.42 P/E ratio reported on Public.com, the company's progress in Phase 2 trials and a $4.5 billion target market support its speculative appeal (Public.com provides the trial and market summaries). The biotech sector's high P/E of 40.65, noted in Siblis Research data, reflects investor appetite for breakthrough therapies, though IKT's lack of profitability and competitive pipeline pose risks.

Competitive Landscape: IKT faces stiff competition from Big Pharma giants like Biogen and Roche. However, its novel approach to neuroinflammation and a first-mover advantage in a niche indication could carve out a profitable niche (the competitive dynamics are outlined in the Public.com analysis).

Conclusion: Balancing Risk and Reward in Small-Cap Investing

The five stocks above exemplify the duality of small-cap investing: high growth potential paired with valuation risks. AEVA and UUUU offer exposure to transformative sectors (autonomous tech and green energy) with strong revenue catalysts, while AEYE and IKT leverage niche markets to command premium valuations. CLMB, though overvalued, benefits from secular trends in enterprise IT.

Investors should prioritize companies with durable competitive advantages and clear revenue drivers, even if current metrics appear stretched. As the Fed's rate hikes lose potency and sector rotation favors innovation, these under-the-radar names could deliver outsized returns in 2025.