23-05-2025
- Business
- The Market Online
A brief dive into two best-performing micro-cap stocks
A stock price chart, though best-performing, tells only a partial story, capturing sentiment without its drivers, saying nothing about whether or not an ongoing trend will continue into the future.
The market-tested investor knows to dig deeper – too experienced to be swayed by past performance's suggestion of future results – and paints a picture of a company's long-term viability based on financials, press releases and industry reports, putting it through the wringer en route to a high-conviction investment decision.
In the newest edition of Stockhouse's Weekly Market Movers, we'll consider two micro-cap stocks with strong year-over-year returns, miles ahead of the TSX's 16.57-per-cent effort, looking to determine whether or not their underlying companies have what it takes to maintain momentum. Realbotix
We begin with Realbotix, a company that creates and sells artificial intelligence (AI)-enabled, human-shaped robots for the purposes of entertainment, companionship and customer service. The robots, manufactured in the United States, boast true-to-life expressions, movements and speech.
According to the company's 2025 guidance, it is well-capitalized to deliver on growth plans, including increasing its sales and marketing teams, to accommodate higher demand expected from robust media coverage and new technology dropping later this year.
Realbotix stock (TSXV:XBOT) has added 223.33 per cent year-over-year – exactly one year since the company transitioned from its previous incarnation as – thanks to revenue growth in Q1 and Q2 2025 that's already outpacing all of 2024, supported by decreasing cost of goods sold and operating losses over the past three quarters.
While Realbotix has generated positive net income in only two out of the past five quarters, a growing number of partnerships have the potential to grant the company the scale it needs to cut costs towards more stable profitability.
Andrew Kiguel, Realbotix's chief executive officer (CEO), spoke with Stockhouse's Lyndsay Malchuk about the company's collaboration with on customer service robots. Watch the interview here. Innovotech
And now for something completely different, we move to Innovotech, our second best-performing micro-cap stock pick ripping as of late, which tracks a Canadian company focused on biotechnology and specialized laboratory services. Here's a business breakdown: The company's Innovotech Labs subsidiary is a contract research organization specializing in antimicrobial testing and the commercialization of antimicrobial silver solutions.
Its Keystone Labs subsidiary is an accredited lab serving Canadian pharmaceutical and industrial markets.
Innovotech also owns 60 per cent of NouLifeSciences, which holds intellectual property related to antioxidant molecules with prospective applications in cosmetics and treating medical conditions including neuropathies.
Innovotech's diversification across multiple products and platforms has served it well, allowing it to almost double revenue year-over-year in 2024, and set a run-rate in Q1 2025 to quadruple revenue by year end, this while generating an overall net income profit from 2020 to date including in Q4 2024 and Q1 2025.
Innovotech stock (TSXV:IOT), no surprise, has behaved positively in reaction, adding 83.33 per cent year-over-year, and stands to climb higher with client demand on a steep rise, prompting the company to expand its staff and equipment portfolio.
Though profitable growth is relatively recent, Innovotech appears to be on a path to rapidly growing its share in the over US$10 billion antimicrobial coatings market, which is expected to post a 13.9 per cent compound annual growth rate through 2030.
Craig Milne, Innovotech's president and CEO, joined Lyndsay Malchuk to discuss the company's financial performance including record revenue in Q1 2025. Watch the interview here.
Thanks for reading! I'll see you next week for a new edition of Stockhouse's Weekly Market Movers. Here's the most recent article, in case you missed it.
Join the discussion: Find out what everybody's saying about these best-performing micro-cap stocks on the Realbotix Corp. and Innovotech Inc. Bullboards and check out Stockhouse's stock forums and message boards.
This is sponsored content issued on behalf of Realbotix Corp. and Innovotech Inc., please see full disclaimer here.
