Written by MarketBeat Staff
March 29, 2024
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 - Kimbell Royalty Partners (NYSE:KRP)
- Consensus Rating
- Buy
- Rating Score
- 3.1
- Ratings Breakdown
- 7 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $21.00 (35.3% Upside)
About Kimbell Royalty Partners
Recent Analyst Ratings
#2 - Hyster-Yale Materials Handling (NYSE:HY)
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $82.50 (28.5% Upside)
About Hyster-Yale Materials Handling
Hyster-Yale Materials Handling, Inc, through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships.
Read More
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.2
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.60 (545.9% Upside)
About Zura Bio
Zura Bio Limited, a clinical-stage biotechnology company, focuses on developing novel medicines for immune and inflammatory disorders. It develops ZB-168, an anti IL7R a inhibitor that impact on diseases driven by IL7 and TSLP biological pathways; and Torudokimab, a monoclonal antibody that neutralizes IL33, which is in Phase 2 clinical trial development.
Read More
Recent Analyst Ratings
#4 - Teekay Tankers (NYSE:TNK)
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $71.67 (22.7% Upside)
About Teekay Tankers
Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; and offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products, as well as liquid gases and various other products.
Read More
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.3
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $11.67 (657.6% Upside)
About InflaRx
InflaRx N.V., a clinical-stage biopharmaceutical company, discovers and develops inhibitors using C5a technology in Germany and the United States. The company's C5a is an inflammatory mediator that is involved in the progression of a variety of autoimmune and other inflammatory diseases. Its lead product candidate is vilobelimab, a novel intravenously delivered first-in-class anti-C5a monoclonal antibody, which completed the Phase III clinical trial for the treatment of hidradenitis suppurativa, a rare and chronic debilitating systemic inflammatory skin disease; for the treatment of anti-neutrophil cytoplasm antibody associated vasculitis, a rare and life-threatening autoimmune disease that is in Phase II trial; to treat pyoderma gangraenosum, a chronic inflammatory skin disorder that is in Phase IIa exploratory study; and for the treatment of PD-1/PD-L1 inhibitor resistant/refractory locally advanced or metastatic cutaneous squamous cell carcinoma that is in Phase II clinical development stage.
Read More
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.2
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $32.00 (35.8% Upside)
About Quanterix
Quanterix Corporation, a life sciences company, engages in development and marketing of digital immunoassay platforms that advances precision health for life sciences research and diagnostics in North America, Europe, the Middle East, Africa, and the Asia Pacific regions. The company offers HD-X instrument, a protein detection platform; and SR-X instrument that enables researchers to apply Simoa detection in an expanded range of applications.
Read More
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $56.75 (21.5% Upside)
About V2X
V2X, Inc provides critical mission solutions and support services to defense clients worldwide. It offers a suite of integrated solutions across the operations and logistics, aerospace, training, and technology markets to national security, defense, civilian, and international clients. The company was incorporated in 2014 and is headquartered in Mclean, Virginia.
Recent Analyst Ratings
#8 - DRI Healthcare Trust (TSE:DHT.UN)
- Consensus Rating
- Buy
- Rating Score
- 3.2
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- C$21.83 (37.6% Upside)
About DRI Healthcare Trust
DRI Healthcare Trust focuses on managing and growing a portfolio of pharmaceutical royalties. It owns a portfolio of 18 royalties derived from the sale of 14 various pharmaceutical products that focuses on eight therapeutic areas. The company was incorporated in 2020 and is headquartered in Toronto, Canada.
Recent Analyst Ratings
#9 - Ceragon Networks (NASDAQ:CRNT)
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 2 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $5.25 (64.1% Upside)
About Ceragon Networks
Ceragon Networks Ltd. provides wireless transport solutions for cellular operators and other wireless service providers. Its solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and service provider's network.
Read More
Recent Analyst Ratings
#10 - Mirum Pharmaceuticals (NASDAQ:MIRM)
- Consensus Rating
- Buy
- Rating Score
- 3.1
- Ratings Breakdown
- 8 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $52.11 (107.4% Upside)
About Mirum Pharmaceuticals
Mirum Pharmaceuticals, Inc, a biopharmaceutical company, focuses on the development and commercialization of novel therapies for debilitating rare and orphan diseases. Its lead product candidate is LIVMARLI (maralixibat), an orally administered and minimally absorbed ileal bile acid transporter (IBAT) inhibitor that is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the United States and internationally.
Read More
Recent Analyst Ratings
More Investing Slideshows: