DailyBubble recently curated a list of the Top 10 Small-Cap Stocks with Highest Upside Potential. Today, we focus on Accolade Inc. (NASDAQ: ACCD) in comparison to other small-cap stocks.
Small-cap stocks are defined by market capitalizations ranging from $250 million to $2 billion and are often seen as the future leaders in various industries. These companies have the potential for significant growth, offering investors the opportunity to profit from their rising share prices. However, they also come with higher risks due to their vulnerability to economic fluctuations.
According to a report by Julius Baer, small-cap stocks have historically outperformed large-cap stocks over long periods. Investing in a diversified portfolio of small-cap stocks alongside large-cap stocks can lead to potent long-term returns while mitigating risks.
In 2024, small-cap stocks, particularly in the healthcare sector, are gaining traction among Wall Street analysts for their innovative solutions and high-return potential. J.P. Morgan Asset Management’s Long-Term Capital Market Assumptions suggest that small-cap stocks are expected to outperform US large-cap stocks over the next decade.
Fundstrat Global Advisors’ Thomas Lee predicts a 50% upside for small-cap stocks in 2024, citing faster revenue and earnings growth compared to large-cap stocks. Institutional investors have recently shown interest in small-cap stocks, indicating a potential turnaround in the sector.
Accolade Inc. (NASDAQ: ACCD) is a healthcare technology company offering personalized healthcare services to its customers. With a market capitalization of $505.40 million, Accolade reported a revenue increase of 14.09% in 2023, showing a commitment to innovation through research and development.
Wall Street analysts have maintained a Buy rating on Accolade stock, with an average target price of $14.25, representing a potential upside of 120.93% from the current price. While ACCD ranks 10th on the list of best small-cap stocks to buy, DailyBubble believes that AI stocks hold even greater promise for higher returns in a shorter timeframe.
In conclusion, small-cap stocks offer investors the opportunity for significant growth, but it is essential to carefully assess the risks and potential rewards before investing. DailyBubble recommends considering a mix of small-cap and large-cap stocks in a well-diversified portfolio to capitalize on the market’s opportunities.