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Dec 25, 2024 1:34 PM - Sanzhi Kobzhan
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Small-cap companies—those with market caps between $300 million and $2 billion—can offer high growth potential for investors seeking new opportunities. Below are five expert-recommended small-cap stocks, along with key reasons they may be worth adding to your portfolio before the year ends.
ACM Research (ACMR)
ACM Research provides specialized equipment to clean microchips in the semiconductor industry. Over the past five years, its earnings have grown by an average of 67.8% annually. Analysts expect earnings per share (EPS) to rise by 6.0% this year and 13.6% next year, reflecting ongoing demand for semiconductor technologies.
Titan Machinery (TITN)
Titan Machinery operates more than 100 outlets across the U.S. and Europe, supplying construction and agricultural equipment. It has seen an average EPS growth of 69.5% annually over the past five years. While a slight 6.3% EPS decline is forecast for next year, the company's long-term outlook remains positive, supported by infrastructure development and agricultural spending.
Stride (LRN)
Stride specializes in online education for K-12 students, a sector that continues to expand as remote learning gains traction. The company's EPS has risen by about 30.8% annually over the last five years. Analysts project further EPS growth of 12.3% this year and 9.2% next year, underscoring consistent demand for virtual learning solutions.
Digi International (DGII)
Digi International develops wireless communication and device networking solutions, boasting over 160 global patents. Its EPS has grown by 60.6% on average per year over the past five years. Analysts anticipate gains of 16.9% this year and 16.5% next year, bolstered by strong financials and a steady track record of performance in the tech sector.
The Bancorp (TBBK)
The Bancorp delivers specialized financial services, including debit and prepaid cards, institutional banking, and commercial lending. Its EPS has climbed by 61.6% annually over the last five years, and analysts predict a 60.4% jump this year along with a 14.3% boost next year. These numbers signal strong momentum in the broader financial industry.
Before investing in small-cap stocks, conduct thorough research and assess factors like market trends, economic conditions, and personal risk tolerance. Please keep in mind that the above names are high growth opportunity stocks based on analyst expectations, but the picture can change if company financials worsen or surrounding conditions like market trends, economic conditions, and company financials change. That's why you should regularly monitor your picks to make corrections to your list of stocks to buy right now. Also while these selections have shown promising growth, diversification and careful evaluation remain crucial in managing risk.
This article is for informational purposes only and should not be taken as financial advice. Always consult with a professional or conduct thorough research before making any investment decisions.
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