Expert names 3 ASX small-cap stocks that will continue to beat the market

ASX small-cap shares have greater ability to generate outsized returns.

Key points
  • Macquarie has identified three ASX small-cap stocks with outperform ratings. 
  • Aussie Broadband impressed with a 56% year-to-date rise. 
  • Superloop and SiteMinder have shown significant revenue and ARR growth. 

ASX investors are often looking for ASX small-cap stocks that have the potential to grow into much bigger companies one day. 

An ASX small-cap stock is defined as one with a market capitalisation of $2 billion or less.

Such investments have the ability to generate outsized returns. 

However, small-cap stocks are often underfollowed and therefore receive less publicity. Accordingly, it can be more difficult for retail investors to discover such opportunities. 

Fortunately, in its latest report, Emerging Leaders Reporting season wrap & best picks, Macquarie named 3 ASX small-cap stocks that it had assigned an outperform rating after earnings season. 

The S&P/ASX 200 Index (ASX: XJO) has risen around 7% for the year to date. Meanwhile, the 3 ASX small-cap stocks named have all risen by between 19% and 56% over the same period. The better news for investors is that Macquarie believes they will continue to beat the market going forward. 

Let's find out which 3 ASX small-cap stocks were named.

Two men look excited on the trading floor as they hold telephones to their ears and one points upwards.

Image source: Getty Images

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband was the first ASX small-cap stock named. 

The company is up an impressive 56% for the year to date. 

Macquarie was impressed by its FY25 result. In particular, the broker said it "showed the strength of its core Residential business from NBN churn, with Residential Gross Profit growth of +15% y/y, with other segments performing relatively in-line." 

Macquarie has an outperform rating and price target of $5.90 on Aussie Broadband shares.

Superloop Ltd (ASX: SLC)

Superloop was the second ASX small-cap stock named. 

The company's shares have risen by an impressive 45% for the year to date. 

Macquarie initiated coverage of Superloop in June and upgraded the stock to outperform shortly after.

According to Macquarie, highlights from its FY25 result included:

Consumer revenue +37% yoy to $363.7m, with ARPU expansion driving growth. Gross margin remains above long term target of 25%, with improvement of +30bps h/h albeit did decline -80bps y/y to 27.4%.

Looking forward, the broker also said Superloop had made a "solid start to FY26 with 17k net new customers added in the first 7 weeks across Superloop and Exetel brands."

Macquarie has an outperform rating and price target of $3.60 on Superloop shares.

SiteMinder (ASX: SDR)

SiteMinder was the third ASX small-cap stock named. 

The company's shares have increased 19% for the year to date. 

Macquarie cited SiteMinder's annual recurring revenue (ARR) growth as a highlight in its FY25 results, noting:

ARR growth tracking towards 30% revenue growth target. ARR of $273.0m was up +30.6% YoY (+27.2% CC) accelerating from +22.0% in 1H25. The acceleration reflects Smart Platform contributions.

Macquarie has an outperform rating and price target of $8.11 on SiteMinder shares

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Macquarie Group, and SiteMinder. The Motley Fool Australia has positions in and has recommended Macquarie Group and SiteMinder. The Motley Fool Australia has recommended Aussie Broadband. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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