Barron’s spotlights six S&P 600 stocks set to keep rallying in 2025

Barron’s has highlighted six small-cap stocks from the S&P 600 index that it expects to keep rallying in 2025. They come from various sectors but have three common features: they have beat analyst earnings estimates in at least seven of the past eight quarters, along with at least 10% expected earnings growth in both 2025 and 2026, and a lower P/E ratio compared to the overall index.

Tripadvisor

The company, known for its namesake website, also runs other platforms for tourists: Viator is an online travel agency, offering everything from standard options to bespoke experiences, while TheFork is a restaurant booking platform operating in Europe and Australia. Morningstar has said these segments are “thriving.” Despite competition from giants like Booking.com, Expedia, and Airbnb, Tripadvisor’s sales have been consistently growing since 2020, notes Barron’s. To boost future growth, the company has already added  to its website an AI assistant, which can answer user questions.

Analysts expect Tripadvisor’s revenue to grow almost 7% annually to just over $2.0 billion by 2026, Barron’s points out. For context, its top line for the first nine months of 2024 was $1.4 billion, up just under 2% year over year.

According to MarketWatch, among the 19 analysts covering Tripadvisor, there are 11 “holds,” four “buys,” and four “sells.” The average target price is $17.27 per share, implying upside of more than 23% versus the last closing price.

Steve Madden

Steve Madden makes shoes and bags under its own brand, as well as Anne Klein and private-label names for various retailers. In the third quarter, its revenue grew 13% year over year to $624.7 million. Analysts expect top-line growth at more than 5% annually over the next two years for a $2.49 billion valuation in 2026, according to Barron’s.

According to MarketWatch, out of the 11 analysts who cover Steve Madden, eight have “hold” recommendations, two have “buy” ratings, and one has a “sell” call. Their average target price of $46.80 per share implies nearly 7% upside versus the last closing price.

Enova International

Enova specializes in online lending to businesses and consumers who are, in the company’s words, “underserved by traditional banks.” It uses AI to analyze borrowers and a machine-learning model to manage risks. In the third quarter of 2024, the company reported $690 million in revenue, up 25% year over year, amid loan originations of $1.6 billion, up 28% versus the previous-year period.

According to MarketWatch, out of the seven analysts covering Enova, five have a “buy” recommendation, while two rate it a “hold.” Their average target price of $105.14 per share suggests 3% upside.

Allegiant Travel

Allegiant Travel’s core business is air travel. Its airline flies over 550 routes, focusing on linking underserved cities with popular vacation destinations. The company noted that the third quarter of 2024 was its seasonally weakest quarter. The airline posted an operating revenue decline of 2.6% year over year to $549.1 million, while consolidated revenue came in basically flat at $562.2 million. The weaker performance was attributed to hurricanes hitting the U.S. East Coast. However, the company expects passenger traffic to recover.

According to MarketWatch, out of the 14 analysts covering Allegiant Travel, only two have a “buy” recommendation, with 11 rating it a “hold” and one a “sell.” Their average target price is $71.50 per share, below the current market price.

LiveRamp Holdings

LiveRamp owns a data collaboration platform, which, according to the company, enables businesses to “securely and in a privacy-conscious manner” share consumer data with partners, for example, to run advertising campaigns. In the fiscal-2025 second quarter (ended October 30), the company’s revenue grew 16% year over year to $185 million. This marked the third consecutive quarter of double-digit growth, noted CEO Scott Howe. LiveRamp also managed to end the quarter with 125 clients with contracts for more than $1 million.

According to MarketWatch, five analysts recommend buying LiveRamp stock, one rates it a “hold,” and no one has it as a “sell.” Their average target price of $36 per share suggests upside of more than 13%.

Mr. Cooper Group

Mr. Cooper specializes in residential mortgages, mortgage refinancing, home loans, and home loan refinancing. In the third quarter of 2024, the company reported 17% year-over-year growth in tangible book value, a key metric indicating the company’s intrinsic value, according to Investing.com. The publication also highlighted Mr. Cooper’s recent acquisition of Flagstar Bank NA’s mortgage business, which is expected to significantly enhance its scale and operational efficiency and boost earnings by 8.5-13.7% for the year 2025.

According to MarketWatch, six analysts recommend buying Mr. Cooper stock, while three rate it a “hold.” Their average target price is $111.50 per share, implying over 16% upside versus the last closing price.