Small-Cap Stocks to Watch Now: A Lull Offers Opportunity

Small-Cap Stocks

Small-cap stocks can outperform large-cap stocks over time; there’s been plenty of proof in the pudding of that. For this reason, many investors choose to add these smaller-priced shares to their portfolio. But with hundreds out there, it can be hard to discern what plays will be the best to make.

Currently, small-cap stocks are lagging the S&P500, according to MarketRealist. So, does now actually offer a potential opportunity?

Here are some small-cap plays to consider.

Small-Cap Stocks to Watch: Fastly

Shares of cloud computing service provider Fastly (NYSE:FSLY) have been volatile in 2019. Only last week, they took a spill, dropping 23.8% after the company announced its fiscal Q2 2019 report. The results showed significant revenue gains, but also significant losses. Unfortunately, the latter drove stock action more than the former.

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The problem is that the losses were bigger than expected“$0.16 per share pro forma, and $0.26 per share as reported under generally accepted accounting principles.”

With this, shares are down at present, selling for $17.56 USD on the NYSE. But the lull might offer risk-averse investors an opportunity. Fastly remains a speculative play and warrants much more research, but with a market cap of $1.60 billion and a hugely lucrative climate for cloud computing, there’s potential in FSLY stock.

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Small-Cap Stocks to Watch: Axos Financial

Based in San Diego, Axos Financial (NYSE:AX) is a bank holding company and the parent company of Axos Bank. With a market cap of $1.68 billion and shares selling for $28.09 at present, Axos Financial has brought investors on a crazy roller-coaster ride already in 2019.

New investors here should expect nothing less moving forward. The company has climbed from lows of roughly $25 to highs of $33—hitting every other figure several times in between across the last six months. But despite the volatility, AX stock still remains up 11% on the year. The volatility exposes these shares, and if the trend continues, then the potential for major spikes is high. These may offer investors a quick return on investment.

Recently, shares began to climb when the Board of Directors of Axos announced a new program to repurchase up to $100 million of its common stock. This is in addition to the existing share repurchase plan, which was approved on March 17, 2016. This plan has approximately $8 million shares remaining. It’s always a nice sign when a company begins to buy back its shares. Keep a close eye on this bank moving forward.

Any small-cap stocks on your radar?

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