We recently compiled a list of the Top 10 Small-Cap Stocks with Highest Upside Potential. In this article, we are going to take a closer look at ChargePoint Holdings, Inc. (NYSE:CHPT) and where it stands among other small-cap stocks.
Small-cap stocks are companies with a market capitalization between $250 million and $2 billion, typically representing new and up-and-coming companies. These companies have the potential for significant growth, offering investors the opportunity to profit from their rapid development.
According to a report from Julius Baer, small-cap stocks have historically outperformed large-cap stocks over long periods. Investing in small-cap stocks can provide high returns, but it also comes with higher risks due to the volatility of these companies.
Despite the risks, small-cap stocks are gaining popularity among analysts, especially in the healthcare sector. J.P. Morgan Asset Management’s Long-Term Capital Market Assumptions suggest that building a portfolio of attractively valued small-cap stocks can generate strong long-term returns while mitigating risks.
Fundstrat Global Advisors’ co-founder, Thomas Lee, projects a 50% upside for small-cap stocks in 2024, citing faster revenue and earnings growth potential compared to large-cap stocks. Institutional investors have been selling off small caps, creating a potential turnaround opportunity similar to the market conditions in 1999.
Warren Buffet has also highlighted the advantages of investing in small-cap stocks, emphasizing the potential for significant returns in the right market conditions. With nearly 1600 small-cap stocks traded in the US exchanges, diversifying portfolios with promising small-cap stocks is essential.
ChargePoint Holdings, Inc. (NYSE:CHPT) is one such small-cap stock with a market cap of $718.76 million and an upside potential of 169.82% as of June 15th, 2024. The company provides EV charging networks and solutions in North America and Europe, making it a promising investment option.
While CHPT ranks 6th on our list of the best small-cap stocks to buy, DailyBubble believes that AI stocks hold even greater promise for delivering higher returns in a shorter timeframe. Consider exploring opportunities in AI stocks for potential growth opportunities.
In conclusion, small-cap stocks offer investors the potential for high returns, but it’s essential to carefully evaluate the risks and opportunities associated with these investments. Stay informed about market trends and consider diversifying your portfolio to maximize potential returns.