Small-cap growth stocks present an opportunity for investors to tap into promising stories early on, with the potential for significant returns as these stories evolve. While there is inherent risk in such investments, even a modest allocation of 10% to small-cap stocks can yield impressive results. In this article, we highlight three small-cap companies poised for substantial growth in revenue, EBITDA, and cash flows in the coming years.
EHang Holdings (EH) is a key player in the nascent flying car industry, having already commercialized eVTOL technology in China. The company’s recent collaboration with Southern Airlines General Aviation Company and clearance for mass production of EH216 from the Civil Aviation Administration of China point to a promising future. With an expanding international presence and a growing order flow, EHang is poised for significant growth in the near term.
Lithium Americas (LAC) stands out in the lithium sector, with the Thacker Pass asset holding immense value potential. The company’s secured financing and partnerships, combined with a strong EBITDA outlook, position it as a cash flow generator with substantial upside. As sentiment towards lithium improves, LAC stock is primed for explosive growth.
Bitfarms (BITF) is a Bitcoin miner with a solid financial foundation, boasting a zero-debt balance sheet and ample liquidity for strategic investments. The company’s increasing hash rate capacity and projected growth in mining capacity underscore its potential for significant revenue and EBITDA expansion. With the overall bullish outlook for Bitcoin, Bitfarms is well-positioned to deliver exponential returns in the coming years.
In conclusion, these three small-cap stocks offer investors the opportunity to capitalize on multi-fold growth potential in revenue, EBITDA, and cash flows. By closely monitoring their progress and staying abreast of industry developments, investors can position themselves for substantial gains as these companies continue to mature and thrive.