When it comes to choosing stocks, there are plenty of fish in the sea. Distinguishing between the good, the bad, and the ugly can be pretty difficult. The TipRanks’ stock screener allows you to examine the fundamentals of thousands of publicly-traded companies, filtering for high-quality, analyst-approved stocks of any size and sector, taking into account their earnings trends, valuations, and much more.
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Picking great small caps can be especially tricky, but they can be found in every sector. Here are some promising small cap stocks to watch:
¤ DHT Holdings (DHT): A brightening economic outlook may lead to a rebound in energy stocks, benefiting this independent crude oil tanker company.
¤ Powell Industries (POWL) and Limbach Holdings (LMB): The reshoring and “Made in America” movement could gain even more momentum. This would benefit industrial companies like Powell Industries and contractor services firms like Limbach Holdings.
¤ Sixth Street Specialty Lending (TSLX): An improving economic outlook will lead to higher demand for lending, propping up the shares of specialty finance companies like Sixth Street Specialty Lending.
¤ Forestar Group (FOR): The housing market is already rebounding, which is poised to help real estate development firms like Forestar Group.
¤ Caleres, Inc. (CAL) and American Woodmark (AMWD): The resilience of the American consumer is expected to continue supporting retailers and wholesalers like Caleres, Inc. This will also increase earnings for home improvement firms such as American Woodmark.
¤ Opera (OPRA): Technology and Communications sectors also include several promising small caps, differentiated by their solid finances. This includes Opera, which offers an acceleratingly popular browser and has been showing triple-digit earnings growth over the past several quarters.
¤ Karooooo (KARO): A provider of mobility Software-as-a-Service, Karooooo seems to be a good value, given its strong earnings trend.
¤ Hackett Group (HCKT): A Nasdaq-traded strategic & digital transformation consultancy, Hackett Group has so far shown that it can ride the AI wave as efficiently as its large-cap peers, all the while carrying a much lower valuation.
¤ Payoneer (PAYO): A global payment and commerce-enabling platform, Payoneer is loved by Wall Street analysts, who foresee as much as 40% upside for the stock in the next 12 months.
¤ International Money Express (IMXI): Brighter economic skies would translate into more demand for money transfer services, which would benefit companies like International Money Express.
Conclusion
The aforementioned companies are just a few examples of promising small-cap companies. They can be found using the TipRanks’ stock screener tool. Their solid fundamentals make them less vulnerable to high interest rates, while their robust business models support future earnings potential.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
