My wife had our second child, a gorgeous little girl, a few weeks ago.

Big things come in small packages, they say.

And I'm amazed at the unbelievable potential that humans have, starting as just little babies.

I'm going to let you in on a secret

The potential that little stocks hold is almost as powerful.

And they'reresponsible for the market'sbiggestgains.

That's right.

Of the 10 biggest stock winners on US exchanges in 2020,noneof them arelarge-cap stocks.

In fact, all of this year's top 10 stocks traded for less than $10 at the start of the year.

But unlike the attention that cute babies like my daughter get

Small stocks get hardly any love from mainstream financial media.

Which is why you've probably never heard of the tiny biotech firm Novavax Inc. (NVAX).

(Well, unless you watchedmy chart video in July.)

The stock's up morethan 3,100% this year. And 2020's top performer traded for less than $2 on Jan. 1.

Vaxart Inc. (VXRT), the second-best performing stock in 2020, has quietly gained 2,100%.

It was a $0.12 stock at the start of the year.

And Bitcoin miner Bit Digital Inc. (BTBT) is up 1,800%.

These surging shares closed at $0.33 when the stock went public in March.

The well-known big tech firms Apple, Microsoft and Facebook, by comparison, areonly up by a fraction of those heady gains.

(And these big ol' stocks would have cost you a whole lot moreto get into.)

Best of all, therearethousands of tiny companiesready to explode even as I write.

So as an early 2021 present to you

I'm going toreveal three of my favorite breakout small-cap stocks under $10 right now.

Small-Cap Pick #1: The Case for the Space Race

Man, I loveOrbcomm Inc. (ORBC).

I mean, who doesn't love space?

This small satellite tech company is a big player in the 5G game.

And a flood of money is flowing into the stock as 2020 comes to a close

The stock has morethan tripled off its March low.

(In fact, I highlighted this surging "space race" stock back in July beforethe stock popped 80%.)

However, as you can see above

Shares finally broke through peskyresistance at $4.50 last month on the company's strong Q3 earningsreport.

My first price target on the stock is $7.50. (That's the $3 range from March low at $1.50 added to the $4.50 breakout point)

Even better, on 5G's strong rollout worldwide

I think there's enough momentum to send the stock back to its 2017 high at $12.

That move would almostdoubleyour money.

Small-Cap Picks #2 & #3: It's Time to Bet Big on Biotech

COVID-19 has wrecked the year for many people.

But thereis one great thing to come out of this awful pandemic

Rapid biotechnology innovation to kill this bug.

And just like the space race of the 20th century led to big tech breakthroughs for the world

The race to kill COVID will spawn a host of new vaccines and treatments for a wide range of diseases.

As aresult, stocks of biotech firms will soar higher over the next decade.

And the smallest biotech stocks aregoing to see the biggest pops.

Cancer-fighting firmsImmunoGen Inc. (IMGN)andBioCryst Pharmaceuticals Inc. (BCRX)aretwo such names.

ImmunoGen focuses on highly-targeted antibody drug therapies to kill cancer.

And investors arepiling into this tiny stock headfirst right now

For much of the year, shares have traded in a range between $6.50 and $2.50 at the low in March.

But the stock broke out to the upside this week as the first COVID vaccines rolled out.

On IMGN's breakout, I expect shares to hit $10.50.

That's an upside of morethan 40% from the stock's close on Tuesday.

The last small-cap on my list, BioCryst Pharmaceuticals, has been fighting already COVID with powerful antiviral drugs.

But it also has a number of cancer and raredisease drugs in late-stage clinical trials.

That's why the stock is popping as big money moves into the biotech space.

Through 2020, shares have carved out a range between $5.50 and $1.50.

And like ImmunoGen, BioCryst shares have broken out as COVID vaccines got the green light.

The breakout heretargets $9.50 which is just below the stock's 2019 high.

But if the stock can blast through last year's top the next stop is $15.

That's an upside of morethan 80% from the stock's current level.

And anyone of these three breakout stocks could be at the top of 2021's stock winners list.

Bottom line: If you want slow, safe, methodical gains Stick with the brand-name large-cap stocks. But if you'relooking for life-changing profits, stock up on small-cap stocks and watch 'em grow up.

On the hunt,

Jonathan Rodriguez