Three of our favorite small-cap stocks for May
We take a look at Vital Farms, Ituran Location & Control and IRadimed Corporation, three promising small-cap stocks
One of the biggest benefits of our AI-powered analysis is that we can dive deep on small-cap stocks that are often overlooked by the market.
Here’s three of our best finds with a market-cap under $2 billion.
We've made the complete reports available with a free account, so you can try out the full Chadwin experience.
Vital Farms, Inc. (VITL)
Vital Farms started in an Austin backyard in 2007 and has grown into the country’s largest seller of pasture-raised eggs. The company buys eggs from a network of more than 425 small family farms across the Midwest and South, washes and packs them at its Egg Central Station in Springfield, Missouri, and ships them to grocery chains, club stores, and restaurants nationwide.
Revenue is almost all eggs: shell eggs for retail (roughly 90% of sales) plus hard-boiled and liquid eggs for food-service. A small but fast-growing stick-butter line (about 4-5% of sales) rounds out the portfolio. Top-line growth is stellar: revenue jumped from $141 million in 2019 to $606 million in 2024—about 30% a year.
Two big grocers account for about one-third of sales, but the brand now sits in more than 24,000 retail doors and reaches roughly 14 million U.S. households. Velocity (how many cartons move per store per week) has climbed 40% in the last year, showing the brand is resonating far beyond its original natural-foods niche.
Ituran Location & Control (ITRN)
Founded in Israel in 1994, Ituran Location & Control installs tiny GPS + RF beacons in cars, trucks, motorcycles and pretty much anything with wheels, then charges a monthly fee to track, recover and crunch driving data.
Revenue shows up in two buckets:
- Subscription services (about 72% of sales) such as stolen‑vehicle recovery (SVR), fleet‑management dashboards and usage‑based‑insurance (UBI) data feeds to insurers;
- One‑off hardware sales (28%)—the black boxes themselves—largely to automakers that pre‑install them at the factory.
The steady subscription stream is the money‑maker; hardware is the door‑opener.
Customers are a mixed bag that keeps concentration risk low: retail drivers in theft‑prone Israel & Brazil, hundreds of logistics fleets, insurance companies looking to price risk more precisely, and carmakers like Nissan and Daimler that bundle Ituran’s tech with new vehicles. Over 2.4 million active devices spit out recurring cash every month.
IRadimed Corporation (IRMD)
IRadimed is a 20-year-old Florida outfit that builds medical devices that can safely cozy-up to a roaring MRI magnet without turning into lethal projectiles. The flagship MRidium IV infusion pump lets anesthesiologists drip drugs into patients while they’re literally inside the scanner—a trick no standard pump can pull off because magnets hate ferrous metals. The companion 3880 patient-monitor tracks heart rhythm, oxygen, blood pressure and CO₂ in the same high-field environment, so techs don’t have to wheel a patient out mid-scan to check vitals.
The business model is simple but lucrative: sell one-off hardware at fat gross margins (~77%) and then add smaller but recurring revenue on proprietary disposables (tubing sets, cables) and service contracts.
Cash flows fund everything: the balance sheet is virtually debt-free and carries $52 million in cash.