Swing traders and long-term investors rarely find common ground. However, in 2025, three small stocks have been making traders rich. They each carry significant risk, but that volatility has served traders well this year. Each of these stocks has significantly outperformed the broader market, even some Magnificent Seven names like NVIDIA (NASDAQ: NVDA).
However, just because these companies aren’t well known doesn’t mean they’re not good long-term investments. Each of these stocks has a long-term thesis that can be compelling to buy-and-hold investors. That is, if they have the risk tolerance for speculative stocks. Plus, these are established companies that haven’t been on investors’ radar.
The immediate risks are that, if the economy improves, swing traders may look for other targets. Plus, the outlook for stocks could turn negative in the second half. Right now, that doesn’t seem likely, so here are three stocks investors should use to take a page out of traders’ playbooks.
This Company’s First-Mover Advantage Is a Lifesaver
[content-module:Forecast|NASDAQ: TMDX]TransMedics Group Inc. (NASDAQ: TMDX) is a small mid-cap company with a market cap of around $4.42 billion as of this writing. The commercial-stage medical technology company has a first-mover advantage in organ transplant logistics. Its Organ Care System (OCS) has proven benefits over cold storage.
TransMedics has the only FDA-approved device for transporting multiple organ types (e.g., heart, liver, lungs). That’s a scalable advantage that traders and investors can seize on.
Traders frequently target medical stocks like TransMedics because it has a limited float of approximately 30 million shares which makes it prone to sharp price swings. Plus, with short interest above 25%, the stock is closely watched by traders looking for short squeeze opportunities.
TMDX stock is up 110% in 2025. However, even though it’s above analysts’ consensus price target, it’s still comfortably below its 52-week high. The company has a premium valuation, but it’s growing revenue and earnings year-over-year (YOY).
This Stock is Going Nuclear as Demand for Energy Increases
[content-module:Forecast|NYSE: SMR]The next on this list is NuScale Power Corp. (NYSE: SMR). The ticker symbol is also an abbreviation for small modular reactors. These are expected to be the future of nuclear power as the world continues to look for ways to meet the growing demand for power. In fact, the company’s VOYGR power module is the only such module approved by the U.S. Nuclear Regulatory Commission.
This demand comes from artificial intelligence (AI) applications. But the stigma around nuclear energy is changing as governments and corporations realize it’s one of the few truly clean forms of energy available.
SMR stock is up about 78% in 2025, with most of that growth coming since May. That’s when the company announced contracts from the U.S. government, which will serve as a long-term source of revenue.
Like TMDX, traders are attracted to SMR stock for its smaller float and 20% short interest. Short interest is down slightly since news of the Department of Energy (DoE) contracts dropped. However, momentum traders like the fact that the stock has over 70% institutional ownership to provide ample liquidity.
An Up-and-Coming Fintech With a Clear Mission
[content-module:Forecast|NASDAQ: DAVE]Dave Inc. (NASDAQ: DAVE) is a financial technology (fintech) company that offers a banking app to help level the playing field for everyday Americans struggling with high fees from traditional banks.
The company offers a personal financial management tool, Budget; ExtraCash as a short-term liquidity alternative, a job application portal to promote supplemental or temporary work, and Dave Banking, a digital checking and demand deposit account.
The company is in a competitive market, but it’s managing to increase its total addressable market (TAM) every year. While Dave is not yet profitable, it is growing YOY revenue and is on a path to profitability.
DAVE stock is up over 120% in 2025, with the strongest gains coming since May, but it has grown over 2,600% since it was a penny stock in 2023.
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