Let's talk about small cap stocks. It's common knowledge that tilting your stock portfolio toward smaller-capitalization companies will generally outperform the S&P 500 over a long enough period of time. Companies that have a market value between $300 million and $2 billion tend to outperform their large cap counterparts simply because they have a lot more room to grow and haven't saturated their markets yet.
While small cap stocks provide some of the best growth opportunities in public markets, they are also much more volatile than their large cap counterparts. Many large cap companies that are name brands among retail investors (Apple, Tesla, etc.) move in unison with the total direction of the market.
It's a different situation with small cap stocks. There are clear winners and losers over the course of the year. Price performance is much more dependent on a small cap's stock performance (earnings per share) and how much interest there is in the company among retail investors. If a small cap stock has strong earnings and gains a following on sites like Seeking Alpha and MarketBeat, they can see their stock price double or triple over the course of a year. That typically doesn't happen with their large cap counterparts.
How do you find the winners though? Sure, you can buy a small cap index ETF and get average returns and you'll do fine over the course of time. But, what if there was a way to identify the best small caps to buy now without having a crystal ball? It's impossible to say with certainty what the best performing small cap stocks will be next year, but we polled the most-accurate and best-performing research analysts on Wall Street to see what they have to say.
Wall Street analysts publish more than 48,000 research notes on small cap companies each year. We've compiled a list of the 10 stocks that they are consistently issuing "buy", "strong buy", and "conviction buy" ratings on.
#1 - DeFi Technologies (OTC:DEFTF)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.8
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About DeFi Technologies
DeFi Technologies Inc, a technology company, develops and lists exchange traded products in Canada, Bermuda, and the Cayman Islands. The company provides asset management services, such as investment vehicles, indirect exposure to underlying cryptocurrencies, digital asset indexes, and other decentralized finance instruments.
More about DeFi Technologies
Recent Analyst Ratings
- Consensus Rating
- Strong Buy
- Rating Score
- 3.7
- Ratings Breakdown
- 5 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Cott
The investment objectives for the Preferred shares are to provide their holders with fixed cumulative preferential quarterly cash distributions in the amount of $0.125 per Preferred share. Fund will invest in an initially equally-weighted portfolio comprised of Equity Securities of ten issuers, selected by the Portfolio Manager from the Investable Universe, that at the time of investment and immediately following each semi-annual reconstitution and rebalancing are listed on a North American exchange pay a dividend and have options in respect of its Equity Securities that, in the opinion of the Portfolio Manager, are sufficiently liquid to permit the Portfolio Manager to write options in respect of such securities.
Recent Analyst Ratings
- Consensus Rating
- Strong Buy
- Rating Score
- 4.0
- Ratings Breakdown
- 9 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Hut 8
Hut 8 Mining Corp is North America's innovation-focused digital asset miner. Located in energy-rich Alberta, Canada. Hut 8 has one of the highest installed capacity rates in the industry and holds more self-mined bitcoin than any crypto miner or publicly-traded company globally. It is executing on its commitment to mining and holding bitcoin and has a diversified business and revenue strategy to grow and protect shareholder value regardless of bitcoin's market direction.
Recent Analyst Ratings
#4 - Siemens Healthineers (OTCMKTS:SMMNY)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.5
- Ratings Breakdown
- 5 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Siemens Healthineers
Siemens Healthineers AG, through its subsidiaries, develops, manufactures, and sells a range of diagnostic and therapeutic products and services to healthcare providers worldwide. It operates through four segments: Imaging, Diagnostics, Varian, and Advanced Therapies. The Imaging segment provides magnetic resonance imaging, computed tomography, X-ray systems, molecular imaging, and ultrasound systems.
More about Siemens Healthineers
Recent Analyst Ratings
#5 - Marker Therapeutics (NASDAQ:MRKR)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.5
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $13.17 (735.4% Upside)
About Marker Therapeutics
Marker Therapeutics, Inc, a clinical-stage immuno-oncology company, engages in the development and commercialization of novel T cell-based immunotherapies for the treatment of hematological malignancies and solid tumor indications. Its multi tumor associated antigen-specific T cell technology is based on the manufacture of non-engineered tumor-specific T cells that recognize multiple tumor-associated antigens.
More about Marker Therapeutics
Recent Analyst Ratings
#6 - Achieve Life Sciences (NASDAQ:ACHV)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.5
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $14.33 (551.5% Upside)
About Achieve Life Sciences
Achieve Life Sciences, Inc, a clinical-stage pharmaceutical company, develops and commercializes cytisinicline for smoking cessation and nicotine addiction. The company offers cytisinicline, a plant-based alkaloid that interacts with nicotine receptors in the brain that reduce the severity of nicotine withdrawal symptoms.
More about Achieve Life Sciences
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.4
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Telecom Italia
Telecom Italia S.p.A., together with its subsidiaries, engages in the provision of fixed and mobile telecommunications services in Italy and internationally. The company operates through Domestic, Brazil, and Other Operations segments. It offers fixed and mobile voice and Internet, and public telephony services, as well as products managed and developed for individuals and families; and voice, data, and Internet services and products, and information and communications technology solutions for top, public sector and large account customers.
More about Telecom Italia
Recent Analyst Ratings
#8 - Constellation Software (OTCMKTS:CNSWF)
- Consensus Rating
- Buy
- Rating Score
- 3.3
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Constellation Software
Constellation Software Inc, together with its subsidiaries, acquires, builds, and manages vertical market software businesses in Canada, the United States, Europe, and internationally. It provides mission critical software solutions for public and private sector markets. The company is also involved in the software licensing; and sale of third-party hardware.
More about Constellation Software
Recent Analyst Ratings
#9 - Select Water Solutions (NYSE:WTTR)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.5
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $14.83 (62.8% Upside)
About Select Water Solutions
Select Water Solutions, Inc, together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services.
More about Select Water Solutions
Recent Analyst Ratings
- Consensus Rating
- Strong Buy
- Rating Score
- 3.9
- Ratings Breakdown
- 7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
About Birchcliff Energy
Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta.
More about Birchcliff Energy
Recent Analyst Ratings
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