7 Small-Cap Stocks to Watch Now — Feb 5 MarketBeat Picks
MarketBeat’s Feb 5 small-cap watchlist: Inflection Point Acquisition II, Rapt Therapeutics and Spring Valley Acquisition—four Direxion ETFs to monitor now.
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MarketBeat’s stock screener highlighted seven small-cap names to watch on Feb 5. Small-cap stocks can offer growth potential and higher volatility, making them attractive to active traders and investors building a diversified watchlist. Below are the MarketBeat picks and why each ticker is worth monitoring.
Inflection Point Acquisition Corp. II (IPOA): A SPAC that has drawn attention for potential merger activity. Investors often track SPACs for deal announcements that can drive sharp price moves, so IPOA remains on many small-cap watchlists.
Rapt Therapeutics (RAPT): A biotech with pipeline developments that could act as catalysts. Small-cap biotech stocks like RAPT can be highly sensitive to trial news, regulatory updates, and partnership deals — factors that reward careful research and risk management.
Direxion Daily TSLA Bear 1X Shares (TSLS): This inverse exchange-traded product offers traders a way to hedge or speculate on short-term weakness in Tesla. While labeled in the MarketBeat screener, note that inverse and leveraged ETFs are designed for short-term trading rather than long-term buy-and-hold strategies.
Direxion Daily PLTR Bear 1X Shares (PDST): Another inverse ETF, PDST appeals to traders seeking downside exposure to Palantir Technologies over brief time horizons. Volatility in underlying stocks can make these products useful tactical tools, but they require active monitoring.
Direxion Daily GOOGL Bull 2X Shares (GOOGU): A leveraged ETF aiming to deliver twice the daily performance of Alphabet. For traders expecting strong short-term momentum in GOOGL, GOOGU can amplify gains — and losses — which reinforces the need for stop-losses and position sizing.
Spring Valley Acquisition Corp. (SVAC): Like IPOA, SVAC is a SPAC worth watching for merger speculation. Price swings around proposed deals or filings can present entry or exit points for nimble investors tracking small-cap opportunities.
Direxion Daily MU Bull 2X Shares (MUZU): This leveraged bull ETF targets Micron Technology’s daily returns at 2x. Traders using MUZU should be comfortable with leverage-related decay over longer periods and treat it as a short-term trading instrument.
When adding these small-cap stocks and ETFs to your watchlist, remember to perform due diligence. Small-cap investing and leveraged/inverse products carry elevated risk and volatility. This article is for informational purposes and not investment advice — consult a financial professional before making trades.
Published on: February 6, 2026, 9:06 am
