Small-cap companies are those with a market capitalization between $300 million and $2 billion. These companies are often in the early stages of growth, working to build their market presence and expand operations. While they may lack the global reach or brand power of larger firms, they can offer stronger growth potential. Their smaller size also makes them more volatile and sensitive to market changes, but for investors willing to take on higher risk, they can deliver significant long-term gains.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Many investors choose to include small-cap stocks in their portfolio to tap into growth opportunities not found in more established companies.
Leveraging TipRanks’ Stock Screener, we have identified three small-cap stocks with Strong Buy consensus ratings from analysts. Furthermore, analysts see over 50% upside for each in the next 12 months. Also, each stock boasts an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, indicating they are highly likely to outperform market expectations. The Smart Score evaluates eight factors to gauge a stock’s potential to outperform the broader market.
Here are this week’s stocks:
indie Semiconductor (INDI) – indie Semiconductor designs chips for advanced driver-assistance systems (ADAS) and other automotive electronics. Its products are used in electric and autonomous vehicles, a segment expected to grow rapidly over the next decade. The stock has a Smart Score of Eight. In the last three months, all five Wall Street analysts covering INDI stock have rated it a Strong Buy. Together, their 12-month average INDI price target indicates an upside of nearly 61.69%. INDI shares have climbed 52% in the last three months but are down 0.43% year-to-date.
Grid Dynamics Holdings (GDYN) – Grid Dynamics provides cloud, AI, and software services to companies in retail, finance, healthcare, and telecom. The company has been expanding its AI-driven offerings, which analysts see as a key growth catalyst as clients accelerate digital adoption. The stock carries a Smart Score of Eight, with all five covering analysts rating it a Strong Buy over the last three months. Together, their 12-month average GDYN price target indicates an upside of nearly 85.55%. GDYN stock is down 65% so far this year.
ACM Research (ACMR) – ACM Research makes equipment used to clean and process semiconductor wafers, serving chipmakers around the world. Its tools are critical in advanced chip manufacturing, especially for leading-edge process nodes. The stock carries a Smart Score of Nine. Over the past three months, four Wall Street analysts covering ACM Research stock have rated it a Buy, while one analyst rated the stock a Hold. Together, their 12-month average ACMR price target indicates an upside of 50.38%. Year-to-date, ACMR stock has gained 58.54%.
What Is TipRanks’ Smart Portfolio?
The TipRanks Smart Portfolio offers insights into the stocks you own and enables comprehensive portfolio analysis. It also allows you to compare your portfolio with those of other investors, including top performers. Interestingly, the tool has been upgraded to provide AI-generated explanations for each holding’s stock movements and to track all assets on your watchlist.
Like all TipRanks tools, Smart Portfolio is easy to use and helps you make data-driven investment decisions.