Small-cap stocks have outperformed large-cap stocks since the start of this year, driven by traders’ confidence in growth opportunities for small-cap companies.
The Russell 2000 index grew more than 6% since the beginning of the year compared to 2.5% gains from the S&P 500 index. Traders believe small-cap stocks are immune to trade war threats that could have a significant impact on the performance of large-cap multinational companies.
Small-cap Stocks to Consider
Comstock Resources (NYSE:CRK) is one of the few small-cap energy companies that has generated substantial gains for its investors year-to-date. CRK shares rose 15% since the start of this year, and its stock is up 50% in the last twelve months. Comstock Resources shares have a 52-week trading range of $4.01 to $11.70 – with a market capitalization of $165 million.
Comstock has been actively working on expanding its natural gas production potential. Its natural gas production of 241 million cubic feet increased almost 55% year-over-year in the first quarter, supported by its Haynesville Shale drilling program. The growth in oil and gas prices over the last couple of months has been contributing to its financial numbers and future drilling programs.
Turtle Beach (NASDAQ:HEAR) is a small-cap technology company that offers audio solutions across various platforms and products. The company has stunned investors with its solid financial and operational performances – which is resulting in a sharp appreciation in its share price.
Turtle Beach shares rose 1000% in the last six months alone. The revenue growth of 185% in the first quarter combined with better-than-expected guidance for the following quarters pushed its stock to an all-time high of $24 last week.
NAPCO Security Technologies (NASDAQ:NSSC) is one of the biggest gainers in the small-cap space. Its share price rose nearly 90% since the start of this year, thanks to its substantial revenue and earnings growth potential. NAPCO’s business model of providing high-technology electronic security, including IoT and connected home, fire alarm, video, and door locking systems offer significant growth opportunities all over the United States.
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