Small-cap stocks have been under pressure ever since the Federal Reserve started hiking interest rates in the first quarter of 2022. As a result, scores of companies in this category sport rock-bottom valuations right now. With the Fed possibly set to reverse course on interest rates next year, though, it might be a smart idea to start adding some select names to your portfolio.

Which small-cap stocks stand out as the most promising? Although it's important to remember that small growth companies are inherently risky, there are several names that screen as incredible bargains at current levels, especially in the heavily sold-off biotech industry. From a risk-to-reward perspective, Agenus (NASDAQ: AGEN) and Coherus BioSciences (NASDAQ: CHRS) stand out from the crowd. Here's why.

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Source Fool.com