“It’s just seven stocks.”
Who remembers this?
It was a popular saying in the early stages of the current bull market.
Many folks claimed the “Magnificent 7” was propping up the market… and that if you didn’t own these stocks, your portfolio would massively underperform.
Today, no one is saying this.
Tons of stocks are working right now. In the S&P 500 alone, 33 stocks are up more than 50% since the start of the year.
But that’s nothing compared to the returns small- and mid-cap stocks have been dishing out, specifically the smaller “sci-fi” names.
Sci-fi stocks operate in bleeding-edge industries, as I explained two weeks ago.
Think quantum computing, robotics, and nuclear energy.
These are considered riskier, more speculative stocks because many of the leading names haven’t posted sales or profits yet. But hype and narrative continue to drive them higher.
Here’s a look at some of the best performers this year:
- Modular nuclear innovator Oklo (OKLO) has exploded 532% higher.
- Satellite imagery company Planet Labs (PL) is up 288% and now sports a $4.8 billion valuation.
- Battery tech disruptor Amprius Technologies (AMPX) has skyrocketed 353% year to date.
These are tremendous returns. And yet small caps could just be getting warmed up.
Take a look at the iShares Russell 2000 ETF (IWM) chart below. IWM gained almost 2% last week and is now emerging from a base that dates back to late 2024:
Source: StockCharts
What this tells me is that money is moving further and further out of “the risk curve.”
In other words, traders are feeling more confident in the markets. They’re not sticking to just the safe assets anymore. They’re going after bigger gains in more speculative stocks.
My premium subscribers have been taking full advantage of these market conditions, with several of our recent trades already posting large returns.
Rocket Lab (RKLB), a space stock I recommended in Express Trader on September 23, has soared 28% over the past week:
Source: StockCharts
Symbotic (SYM)—one of our robotics plays in RiskHedge Live—has spiked 27% over the past week:
Source: StockCharts
We also recently picked up shares in SoundHound AI (SOUN), a leader in the voice AI space. It’s rallied 19% over the past five days:
Source: StockCharts
Each of these stocks fit squarely into the “sci-fi” theme I mentioned earlier. They’re not just pushing the limits of their industries—they’re rewriting what’s possible.
So, what’s the next hot sci-fi stock?
One name I have my eye on is Ouster (OUST), a small-cap drone stock that I shared a few weeks back.
Source: StockCharts
OUST has been a top performer this cycle, and it looks ready to make a big move.
Justin Spittler
Chief Trader, RiskHedge
PS: Despite their current strength, I don’t recommend backing up the truck on small caps. These names can move fast… in both directions.
Instead, it’s better to follow a proven system that both manages risk and takes the emotion out of trading. That’s what I offer with my Express Trader advisory.
Express Trader will get you into my three strongest trades every week depending on current market conditions… and get you out before those conditions turn against us. Go here to see if it’s right for you.
