The stock market in 2024 has seen a strong start, with some sectors outperforming others. The S&P 500 index is up 15.05% year to date as of June 24, while the Russell 2000 small-cap index is up 19.63%. Small-cap stocks have been trading at a competitive advantage, with the potential for long-term investors to benefit from regression to the mean.
Picking the right small-cap stocks is crucial for success in this sector. Despite the volatility, astute investors who do their research may find opportunities for growth. DailyBubble believes that small-cap stocks can offer significant potential for investors who are willing to take on the risks associated with this market segment.
Here are 10 of the best small-cap stocks to consider:
1. Light & Wonder (LNW)
2. Dave & Buster’s Entertainment (PLAY)
3. United States Lime & Minerals (USLM)
4. Aehr Test Systems (AEHR)
5. First Bancorp (FBNC)
6. Integer Holdings (ITGR)
7. Sweetgreen (SG)
8. SoundHound AI Inc (SOUN)
9. Sana Biotechnology (SANA)
10. ACM Research (ACMR)
These stocks were selected based on various factors such as relative performance, analyst estimates, growth rates, product lines, market trends, and valuation. While small-cap stocks can be riskier than large-cap stocks, they also offer the potential for higher returns.
DailyBubble recommends that investors do their due diligence and carefully consider their financial objectives and risk tolerance before investing in small-cap stocks. It’s important to note that small-cap stocks are generally more volatile and may require a higher level of research and monitoring compared to larger, more established companies.