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Small-cap stock UFP Technologies (NASDAQ: $UFPT ) is quickly recovering after a difficult year, presenting an opportunity for investors.

Two weeks into the new year and UFPT stock is up 16%, with signs of growing momentum behind the share price.

Investors needn't worry that they've missed the move higher in UFP Technologies stock. The company's share price is still relatively flat (up 1%) over the past 12 months.

Yet, UFP Technologies has proven itself to be a long-term winner for investors. Over the last five years, the stock has risen an impressive 444%.

Since its market debut in 1993, UFPT stock has posted a 4,400% gain.

Based in Massachusetts, UFP Technologies is a biomedical company that makes medical devices, sterile packaging, and other custom products for the healthcare sector.

The company is a leader when it comes to making orthopedic devices and implants. UFP technologies has been in business for 63 years and has annual revenues of $400 million U.S.

The stock fell in 2025 due to a negative short-seller report by Wolfpack Research that alleged major challenges with UFP Technologies largest customer, Intuitive Surgical (NASDAQ: $ISRG ).

The report claimed that Intuitive Surgical was shifting its medical device production in-house, leading to potential shipment and revenue declines for UFP Technologies.

UFP Technologies vigorously disputed the report and the company's financial results have remained steady, leading to the recovery in its share price.

Yet UFPT is a small-cap stock, some might say a micro-cap stock, with a market capitalization of only $2 billion U.S.

There's no dividend on offer from UFP Technologies, but investors who take a position are likely to benefit from big long-term gains in the stock.

If anything, the share price decline over the past year has brough the valuation of UFPT stock down to a more reasonable 30 times future earnings estimates. Worth a look.