Bloomberg highlights ten small-cap companies to watch in 2025
Bloomberg Intelligence has identified ten small- and mid-cap companies to watch carefully in 2025. These companies are poised for potential transformation, driven by catalysts such as leadership changes, asset sales or acquisitions, and plans for new products or services. The list also considers the potential impact of the incoming U.S. administration’s policies, ongoing geopolitical conflicts, and technological advancements. Here are the small-cap stocks analysts recommend keeping an eye on:
Adecco Group AG
Market capitalization on the Swiss Exchange: CHF3.65 billion ($4 billion)
Adecco is one of the world’s largest workforce solutions providers for corporate clients, however, it has faced declining profits in recent years. This was due to reduced demand for temporary staffing and lower employee turnover, which curbed replacement needs. With uncertainties from the U.S. elections now resolved, inflation easing, and interest rates decreasing, demand for staffing is expected to rise, boosting Adecco’s revenues. According to a consensus forecast, the company’s revenue could grow 2% in 2025.
Bank OZK
Market capitalization on the Nasdaq: $5 billion
With the Fed lowering rates, Arkansas-based Bank OZK may see shrinking margins and slower loan growth. The bank’s $29.2 billion portfolio, which hit a record high in the third quarter of 2024, contains a larger proportion of floating-rate loans compared to many peers, making it sensitive to revaluation with further Fed rate cuts. Analysts also note that the bank’s costs are likely to remain stable, as it relies on fixed-rate certificates of deposit to fund its balance sheet.
Imax Corporation
Market capitalization on NYSE: $1.33 billion
In 2023, Imax, a producer of giant cinema screens, reported a 23% revenue increase, reaching $374.8 million. However, the company could face challenges in 2025 due to weakened consumer spending affecting the cinema industry. Despite this, Bloomberg’s consensus forecast projects a 10% revenue increase and an average profit growth of 16% annually through 2026, driven by market share expansion in both mature and emerging markets.
ITV Plc
Market capitalization on the London Stock Exchange: GBP2.7 billion
The British broadcasting company may fall short of market expectations for operating profits in 2025, hindered by weak demand for content and TV advertising. Additionally, the high bar set for ad revenue during the Euro 2024 football championship poses challenges for year-over-year comparisons. Bloomberg predicts a 2% decline in ITV’s revenue to $4.4 billion (GBP3.5 billion) in 2025, compared to GBP3.6 billion in 2023.
Persimmon PLC
Market capitalization on the London Stock Exchange: GBP3.8 billion
British homebuilder Persimmon stands to benefit from rising housing demand, lower mortgage rates, and eased government planning restrictions. These factors could drive construction activity and improve the company’s financial performance. In 2023, Persimmon’s revenue dropped 26% year over year to GBP2.8 billion. However, a consensus forecast predicts a 10% increase in 2025 to $4 billion (approximately GBP3.2 billion).
Remy Cointreau
Market capitalization on Euronext Paris: EUR3 billion
During the 2023-2024 fiscal year, which ended on June 30, the French spirits producer reported a nearly 23% decline in revenue to EUR1.2 billion, as high interest rates deterred wholesalers from maintaining inventories. However, Bloomberg analysts anticipate a recovery in U.S. sales in 2025, driven by falling interest rates and improved consumer confidence. A significant challenge remains the 39% tariff on cognac and brandy introduced by China in October. Revenue growth is expected at 2%.
Sibanye-Stillwater
Market capitalization on the Johannesburg Stock Exchange: ZAR45.37 billion ($2.42 billion)
South African mining company Sibanye-Stillwater is listed on the Johannesburg Stock Exchange, with its depositary receipts trading on the New York Stock Exchange. The company produces gold, palladium, platinum, and other metals and stands to benefit from rising demand for internal combustion engines and hybrid vehicles, which rely on platinum. Potential U.S. sanctions on Russian palladium, under discussion as of October, could further bolster Sibanye-Stillwater’s position. Additionally, record-high gold prices offer a strong financial cushion, according to Bloomberg.
Signify NV
Market capitalization on Euronext Amsterdam: EUR2.66 billion
Signify, the world’s largest lighting manufacturer, is expected to benefit from increased demand in 2025, fueled by declining interest rates in the U.S. and Europe, as well as improved access to mortgage financing. As homeowners prioritize comfort, lighting solutions play a key role. Bloomberg projects a 2% rise in revenue, reaching $6.6 billion in 2025.
Subsea 7
Market capitalization on the Oslo Stock Exchange: NOK53 billion ($4.8 billion)
Subsea 7, an oilfield services company, specializes in offshore energy projects, offering solutions for deep-water operations and challenging environments. The company is witnessing growing demand from oil and gas producers. Bloomberg forecasts a 6% increase in revenue, climbing to $7.2 billion in 2025 from $6 billion in 2023.
Teladoc Health
Market capitalization on NYSE: $1.6 billion
The virtual healthcare provider is recovering from investor disappointment over high marketing expenses in its mental health division, BetterHelp, which led to a nearly 57% drop in share value since the start of the year. In June, Teladoc appointed a new CEO, Charles Divita III, who aims to drive international expansion and deepen integration with insurance plans. However, progress has been slow. Bloomberg forecasts a 1% decline in revenue to $2.5 billion in 2025. Back in 2023 Teladoc reported $2.6 billion in revenue.
