It’s no secret that in the past 12 months, various small-cap stocks have underperformed. The S&P SmallCap 600 has lost 9% of its value, while microcaps have dropped by roughly 20%. And yet, there are still small-cap stocks that shouldn’t go unnoticed as they provide growth opportunities for investors.
Consider Inseego Corp, HEXO Corporation, and Upwork.
Small-Cap Stocks: Upwork (NASDAQ:UPWK)
Debuting in 2018, Upwork offers freelancers an online platform where they can offer their services to companies. The stock has had a few setbacks, losing 25% of its value after its Nasdaq debut, but analysts believe Upwork has serious potential.
In 2019, more and more people are looking to platforms such as Upwork for gigs that are either their primary jobs or jobs for extra cash, and Upwork is well suited to take advantage of that trend, which means long-term growth could be on the horizon. And we’ve already seen the influence this trend of employment has had on the company. In Q1 2019, the company’s revenue increased by 16% Y-O-Y. If you’re a long-term investor, Upwork might be a stock to watch.
At the time of writing, UPWK stock is up 0.45%, trading at $15.46.
Small-Cap Stocks: HEXO Corporation (TSX:HEXO) (NYSE:HEXO)
Based in Canada, HEXO Corporation produces and distributes cannabis for both recreational and medical uses. This is a stock worth watching, considering even Wall Street analysts are praising the stock’s potential, such as Russel Stanley from Beacon who just reiterated his buy recommendation last month.
In the first quarter of 2019, the company’s production stood at 9,804 kilos. For fiscal 2020, the company projects that production will be around 150,000 kilos. If this were to happen, annual revenues would increase from roughly $64 million to $400 million. So, it’s pretty clear why long-term investors might want to follow HEXO over the next several months.
At the time of writing, HEXO stock is up 2.12%, trading at $5.29.
Small-Cap Stocks: Inseego Corp (NASDAQ:INSG)
Sure, Inseego Corporation has yet to become profitable, but that doesn’t mean analysts don’t expect good things from the company over the next five years. In fact, Wall Street believes the company will see its annual revenues increase by 20% during this time. If this were to happen, the stock would increase by roughly 80%, and that’s something investors will want to be a part of.
At the time of writing, INSG stock is down 1.68%.
Small-cap stocks can be volatile, but that doesn’t mean they don’t have their merits. Whether it’s because they are cheap to buy or because they have the potential for significant growth, stocks like HEXO, Inseego Corp, and Upwork shouldn’t go unnoticed.
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