Lemonade, Inc. Common Stock (LMND)

Snap, Lemonade, and Aehr Test Systems could soar higher.

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.

A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. 

This AI-driven insurer could still have a bright future.

Great things are happening to the stocks in this article. They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.

Small-cap stocks have been gaining momentum in 2025, with several names showing upside potential driven by improving fundamentals and technical breakouts.

Lemonade's AI-driven model is fueling accelerating growth and forging a clear, data-driven path toward sustained profitability in the insurance industry.

AI-powered insurance provider Lemonade is on track to reach profitability next year and may exceed forecasts in 2025 because of increasing leverage.