Finding a quality up-and-coming stock is a tricky proposition, but doubly so now that we’re well past the ZIRP-era “stocks go up” sentiment. In the past, you could throw capital at any up-and-coming stock and have a pretty good chance of generating returns. But, today, investors demand fundamental strength and a solid path to profitability before they consider a sizable investment.

However, these companies meet the mark. They have the financial stability coupled with long-term potential that underscores the best qualities of an up-and-coming stock. While they may not 10X as quickly as stocks did in 2020 or 2021, they remain quality long-term holds. This is especially true considering how cheap they trade today.

SoundHound AI (SOUN)

Covering small-cap SoundHound AI (NASDAQ:SOUN) months ago, I recommended it based on its unique position among voice recognition competitors. Since then, the core thesis hasn’t changed. But this up-and-coming stock is enjoying newfound popularity among investors.

The bullish thesis proposes that SOUN is poised for significant growth as it innovates in the often-ignored voice recognition sector. The potential market for voice recognition technology is expanding, such as SOUN’s contribution to restaurant efficiency. And, companies like SOUN demonstrate that their market scope depends on their ability to adapt their technology to various needs.

This week, Nvidia (NASDAQ:NVDA) affirmed SoundHound’s up-and-coming stock potential and recently declared a multi-million-dollar investment in the company. Noticeably, this uplifted SoundHound’s stock value. Known for its strategic investments in promising AI startups like Recursion Pharmaceuticals (NASDAQ:RXRX), Nvidia’s latest move follows its participation in SoundHound’s $75 million funding round in 2017. This signals that Nvidia has been tracking SoundHound’s progress well before the surge in AI interest. Continuous support from Nvidia, a leading figure in the AI industry, suggests a promising outlook for up-and-coming stock SoundHound.

AST SpaceMobile (ASTS)

AST SpaceMobile (NASDAQ:ASTS) is one up-and-coming stock that keeps stacking up win after win. Last week, the company announced a bombshell (secret) deal with the U.S. government.

Although specific details remain under wraps, a lack of clarity doesn’t overshadow its significance. Like Nvidia throwing its hat in SoundHound’s ring, U.S. government support for ASTS is a strong endorsement of the company’s potential and future offerings. This approval is particularly noteworthy given that ASTS is still in the pre-revenue phase, with its initial widespread commercial launches set for later in the year.

This announcement follows closely on the heels of ASTS securing a significant strategic investment that attracted notable investors such as AT&T (NYSE:T) and Google (NASDAQ:GOOG, NASDAQ:GOOGL). Despite a follow-on dilutive share offering, the up-and-coming space stock is riding high. Therefore, all signs point to 2024 being a banger year for the company.

ClearPoint Neuro (CLPT)

ClearPoint Neuro (NASDAQ:CLPT) is bouncing back after a losing streak that brought its per-share pricing down nearly 20% over the past year. Despite this setback, ClearPoint is a top pick among up-and-coming healthcare stocks. It presents a prime opportunity for investors in small-cap healthcare.

The company’s flagship ClearPoint platform revolutionizes brain surgery by increasing procedural precision when diagnosing and treating neurological conditions. The recent increase in share price can be largely attributed to a series of swift regulatory approvals. Further, those have placed ClearPoint at the leading edge of medical device innovation.

A pivotal approval from the Food and Drug Administration (FDA) authorizes the clinical application of ClearPoint’s SmartFrame OR Stereotactic System. This system is changing the landscape of radiation therapy in stereotactic radiosurgery. It provides a non-invasive option that targets cancerous tissues with radiation to shrink tumors, distinguishing itself by its in-operating room functionality, which extends its use beyond environments exclusively equipped with MRI technology. Joe Burnett, the President and CEO, highlights the importance of this advancement. He points out that it enables the product’s use in a broader range of hospitals, thereby potentially benefiting a much larger group of patients than ClearPoint’s earlier technologies.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.