In this article, we’ll take a look at the best small cap stocks for 2023 and why they are worth considering. Small cap stocks have always been attractive to investors looking to grow their portfolios. They generally offer more potential for returns than larger companies, but also come with greater risks. Investing in the right small cap stocks can be a great way to expand your portfolio and gain an edge in the market.
What are Small Cap Stocks?
Before we dive into the best small cap stocks, it’s important to understand what small cap stocks are and why they can be a great investment. Small cap stocks, also known as penny stocks or micro-cap stocks, are stocks of companies with small market capitalizations. These companies generally have limited resources, making them risky investments but also potentially more rewarding if the company succeeds.
Advantages of Investing in Small Cap Stocks
There are several advantages to investing in small cap stocks. First, they are generally cheaper than larger stocks, making them more accessible to investors with lower budgets. Secondly, small cap stocks have the potential to provide higher returns than larger companies, due to the fact that they are more volatile. Finally, small cap stocks are often overlooked by larger investors, giving investors the chance to find undervalued opportunities before they become widely known.
Risks of Investing in Small Cap Stocks
Of course, there are also risks associated with investing in small cap stocks. As mentioned above, these companies are generally less established and have limited resources, making them riskier investments than larger companies. Additionally, the nature of small cap stocks means that they can be illiquid and more difficult to trade, making it harder to sell them quickly if needed.
Best Small Cap Stocks and Sectors to Invest In
Now that we’ve gone through the advantages and risks of investing in small cap stocks, let’s take a look at some of the best small cap stocks sectors to consider.
In general, most small cap investors have made money in 3 sectors: biotechs, energy, and technology.
Small cap biotech stocks are stocks of companies in the biotechnology industry that have a small market capitalization (typically less than $2 billion). Examples of small cap biotech stocks include Celldex Therapeutics (CLDX), Krystal Biotech (KRYS), and Veracyte (VCYT).
Small cap energy stocks refer to publicly traded stocks of energy companies with a market capitalization of less than $2 billion. These companies are typically smaller, younger, and more volatile than their larger counterparts, but can offer greater potential for growth. Examples of small cap energy stocks include Consol Energy (CEIX), RPC Inc (RES), and Flex LNG (FLNG).
Small cap technology stocks are stocks of technology companies with a market capitalization of up to $2 billion. These companies tend to be younger and riskier than larger tech companies, and can offer the potential for significant growth. Examples of small cap tech stocks include Sabre Corp (SABR), Vizio (VZIO), and Payoneer Global (PAYO).
4 Best Small Cap Stocks For 2023
Our list of the 4 best small cap stocks for 2023 include Rogers (ROG), Forward Air (FWRD), Cantaloupe (CTLP), and RadNet (RDNT). This is the GuerillaStockTrading.com list of small-cap stocks with huge growth potential!
Rogers Corporation (ROG)
The Rogers Corporation creates, produces, and sells engineered materials and components globally. The segments it uses to operate are Advanced Electronics Solutions (AES), Elastomeric Material Solutions (EMS), and others. For use in electric and hybrid electric vehicle (EV/HEV) applications, wireless infrastructure, automotive, telematics and thermal solutions, aerospace and defense, mass transit, clean energy, connected devices, and wired infrastructure markets, the AES segment provides circuit materials, ceramic substrate materials, busbars, and cooling solutions.
Forward Air (FWRD)
In the US and Canada, Forward Air Corporation conducts business as a asset-light freight and logistics provider. Expedited Freight and Intermodal are its two business divisions. The expedited regional, interregional, and national less-than-truckload services, local pick-up and delivery services, and other services, such as final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling, are all offered by the expedited freight segment. Additionally, this market segment provides services like dedicated fleet, high security, and temperature-controlled logistics. The Intermodal segment offers contract, and container freight station warehouse and handling services in addition to intermodal container drayage services.
Cantaloupe Inc. offers technological answers for the unattended retail industry. For processing payments, logistics, and back-office administration, the company provides integrated solutions. Additionally, it offers ePort, an integrated payment device that is used in self-service, unattended market applications, including vending, micromarkets, amusement, arcade, commercial laundry, air/vacuum, car wash, and others, and integrated software services for payment or asset tracking devices.
RadNet Inc. provides diagnostic imaging services for outpatients in the US. In addition to multi-modality imaging services, it offers magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures. Additionally, the business creates and markets computerized systems for the diagnostic imaging sector, such as picture archiving communications systems and related services. It also creates and implements AI suites to improve radiologist interpretation of mammogram images as well as AI solutions for lung and prostate cancer.
Investing in small cap stocks can be a great way to diversify your portfolio and gain an edge in the market. Small cap stocks generally offer more potential for returns than larger companies, but also come with greater risks. For investors looking for the potential of higher returns, the best small cap stocks to consider include biotechs, energy companies, and tech companies. Our list of the 4 best small cap stocks for 2023 include Rogers (ROG), Forward Air (FWRD), Cantaloupe (CTLP), and RadNet (RDNT).