Quantum, genomics, and finance: three small-cap stocks with over 1,000% returns in 2024

In 2024, small caps generally lagged behind their larger peers. However, several niche small-cap stocks experienced explosive growth, having soared more than 1,000%, according to Freedom Broker. Among them were genetic testing provider GeneDx, quantum computing pioneer Rigetti Computing, and Gen Z-focused banking service Dave. Let’s take a look at what made these companies stand out. 

GeneDx Holdings Corp

The stock has surged about 2,685% since the start of 2024.

Freedom Broker attributes GeneDx stock’s growth to the company’s business model, competitive advantages, and increased interest in the sector as a whole. GeneDx specializes in genome and exome sequencing — gene decoding — and offers diagnostic solutions to identify genetic diseases. According to the official website, its portfolio includes three types of tests, one of which is a rapid genetic disease test.

GeneDx employs AI and machine learning to create dynamic patient health models and identify optimal personalized treatment pathways, Freedom Broker notes. In the third quarter of 2024, the company’s revenue grew 52% year over year to $76.6 million, with most of it — $60 million (up 77% year over year) — coming from genome and exome tests. The increased share of these tests in total sales allowed the company to boost margins and reduce costs for ten quarters in a row, says Freedom Broker. It expects GeneDx to break even in 2025 and post a net profit of $13.89 million.

Analysts’ opinions on GeneDx’s prospects are mixed. According to MarketWatch, the stock has three “buys” and three “holds,” with an average target price of $80.83 per share, implying 5.5% upside versus the closing price on December 30.

Rigetti Computing Inc.

The stock is up 1,626% since the beginning of 2024.

Rigetti Computing is a pioneer in quantum computing, leveraging quantum mechanics to accelerate complex problem-solving. Interest in this field, which grew throughout 2024, was heightened by the year-end release of Google’s Willow chip, which can solve problems that would take classical computers billions of years, Freedom Broker notes. Given the rising investor interest in the sector, Freedom Broker believes that it will continue to evolve in 2025.

Rigetti’s business model involves designing, manufacturing, and deploying full-stack quantum computing systems as well as offering cloud services to access quantum computational power. The company aims to integrate quantum solutions with classical computing to address real-world challenges in science, finance, and logistics.

For now, the company is loss-making. Its net loss for January–September 2024 came in at $48 million, down 23% compared to the previous-year period.

According to MarketWatch, all six analysts covering Rigetti rate it a “buy.” 

Dave Inc.

The stock has soared about 1,027% for the year to date.

This fintech company positions itself as an alternative to traditional banks. For instance, Dave offers cash advances to avoid bank overdraft fees. Investments in Dave allow investors to benefit from the growing competition between fintech companies and traditional banks, as well as the rising demand for affordable financial services among underbanked populations, Freedom Broker notes. Thanks to its digital approach, Dave is well-positioned to capture significant market share, particularly among millennials and Gen Z. Dave stock rallied after Donald Trump’s victory in the presidential election, as his focus on reducing regulatory barriers makes him an appealing figure for the financial sector, Freedom Broker reports.

“The rally was also driven by positive quarterly financial results, which showed strong growth in financial and operational metrics, as well as record adjusted EBITDA, which beat the full-year forecast in the third quarter alone!” Freedom Broker noted.

For the third quarter of 2024, Dave reported adjusted EBITDA of $24.7 million. Early in the year, the company projected full-year EBITDA of $25–35 million versus the current guidance of $71–74 million.

In addition, Dave announced product enhancements to improve monetization and regulatory compliance and revealed a partnership with a new bank (its name was not disclosed), as reported by Freedom Broker.

According to MarketWatch, the seven analysts who cover Dave unanimously rate it a “buy.” Their average target price is $107.30 per share, almost 14% above the last closing price.