Investing in small-cap companies can be a thrilling but challenging endeavor. These companies, typically valued between $300 million and $2 billion, offer the potential for significant growth but also come with high risks. DailyBubble has identified three fundamentally sound small-cap stocks that are currently trading at a discount compared to their peers: LifeVantage Corporation (LFVN), Hudson Global, Inc. (HSON), and SigmaTron International, Inc. (SGMA).
With the global economy showing signs of improvement, now could be an opportune time to consider small-cap stocks. These companies, with market capitalizations in the $300 million to $2 billion range, often present growth opportunities that larger companies cannot match. As the economy rebounds, small-cap companies are well-positioned to benefit from increased consumer spending and business activity.
Historically, small- and mid-cap stocks have outperformed large-cap stocks, with returns of 2,062% and 3,176% respectively over the past 35 years. This track record highlights the potential of small-cap investments, especially in the current economic climate.
Let’s take a closer look at the fundamentals of the mentioned stocks:
**LifeVantage Corporation (LFVN):**
LFVN is engaged in developing and selling various health and wellness products. The company recently expanded its operations into new markets and offers a competitive compensation plan for its consultants. With strong financial metrics and positive earnings outlook, LFVN presents a compelling investment opportunity.
**Hudson Global, Inc. (HSON):**
HSON provides talent solutions for multinational companies and government agencies. The recent acquisition of Executive Solutions in Dubai demonstrates the company’s commitment to global expansion. With attractive valuation multiples and solid financial performance, HSON is well-positioned for growth.
**SigmaTron International, Inc. (SGMA):**
SGMA specializes in electronic manufacturing services and offers a range of support services. The company has strong financial metrics and a track record of revenue growth. With a favorable valuation and solid performance, SGMA presents an attractive investment opportunity.
Overall, small-cap stocks like LFVN, HSON, and SGMA offer investors the potential for significant growth in a recovering economy. DailyBubble’s analysis suggests that these companies are well-positioned to outperform their peers and deliver strong returns for investors.