Stock Trends
Small-cap growth ideas
Good morning,
Today’s Stock Trends is going to look a little bit different.
You may have noticed I’ve started to regularly feature a sub-section called “small cap long ideas.” The thought was to put some under-the-radar, smaller stocks, with high potential upside, in front of you before they become household names.
And today, we’re taking that even further by adding a fundamental screen. I reviewed every stock in the Russell 2000 with sales growth of at least 30% over the past year and brought you the best charts I could find.
We’re taking a more big-picture view, so each chart is shown on a weekly basis with only relative performance in the bottom panel. I’ve also included the new “AI says” summary for each one, so we have a clue what each one does.
Finally, they’re grouped into a few loose categories, some based on the chart characteristics, others based on their industry. If there’s a macro takeaway, you’ll quickly see how deep the AI trade has extended into the small cap universe, and far from the traditional tech and semiconductor themes.
I hope you all like it!
Base Finder worthy small caps
WLFC: Willis Lease Finance
AI says: A $1.4 billion financials stock that is a global commercial aircraft engine lessor and servicer; the launch of Willis Aviation Capital — a third-party asset management platform backed by institutional partners including Blackstone and Liberty Mutual — represents a significant expansion beyond balance-sheet leasing into fee-based recurring revenue.
WLFC has pulled back sharply from resistance over the past two weeks, but is coming into a big zone of support. As long as that holds, this base should continue to build, and eventually, break out.
PNTG: The Pennant Group
AI says: A $1.1 billion health care stock that is a home health, hospice, and senior living operator across 17 states; accelerating post-acquisition integration in the Southeast, a 33%+ revenue growth trajectory, and favorable hospice reimbursement rate proposals are the key near-term catalysts.
PNTG is pushing to the top of an 18-month base. A breakout above $37 measures to $52.
NPCE: NeuroPace
AI says: A $620 million health care stock that is a medical device company focused on drug-resistant focal epilepsy, offering the proprietary RNS System — a brain-responsive neuromodulation device; major Medicare reimbursement rate increases effective January 2026, plus a pending FDA label expansion into generalized epilepsy (IGE), are the primary growth catalysts.
Another Base Finder-worthy stock, NPCE is testing the top of a two-year resistance range and bounced off a rising 200-DMA last week. The coiled relative chart looks ready to follow a breakout higher; last week’s low at $13.65 could be used as a stop.
MRX: Marex Group
AI says: A $3.6 billion financials stock that is a London-based financial services platform providing liquidity, market access, and clearing services across commodities, equities, and fixed income; a rapid acquisition strategy — including Winterflood market making and Webb Traders — is broadening the revenue base and expanding its U.S. structured products footprint.
MRX IPO’d just over two years ago, and just broke out of a one-year base. That breakout was successfully retested two weeks ago, and the minor pullback since looks like a textbook buying opportunity.
UTI: Universal Technical Institute
AI says: A $1.7 billion consumer discretionary stock that is the leading vocational training provider for the automotive, diesel, and skilled trades sectors; surging demand for skilled tradespeople and a 20+ new program rollout in fiscal 2026 underpin a path to $1.2 billion in revenue by fiscal 2029.
A small-cap long idea from March 26, UTI has pulled back about 8% this week. However, holding the long-term support zone and short-term uptrend line, this looks like an opportunity if the stock can stabilize.
