The Allure of Small Caps
Small-caps, often shunned for their volatile nature, can, in fact, turn out to be the hidden gems of the stock market. While their ups and downs may deter some, these lesser-known stocks often surprise investors by delivering substantial long-term returns. The under-the-radar appeal provides astute investors with an opportunity to enter the market before it gets crowded.
QuickLogic’s Power Surge
QuickLogic, a semiconductor player offering ultra-low power sensor processing solutions, has been on a tear. With a Zacks Rank #1 (Strong Buy) and a stellar earnings estimate revision, the company showcases impressive growth potential. After a bout of negative earnings surprises, QuickLogic made a stunning comeback, surpassing the Zacks Consensus EPS estimate by a substantial margin of nearly 30%. The soaring sales by 80% year-over-year and a remarkable 255% jump in earnings have left investors cheering for more, propelling the stock to outperform the market significantly in 2024.
IMMERSION’s Sensory Success
IMMERSION, a Zacks Rank #1 (Strong Buy), specializes in touch-based hardware and software technologies. While the stock experienced volatility earlier this year, a recent uptick following robust earnings signals stability. The company’s growth trajectory is promising, with estimates predicting a substantial increase in both earnings and sales. Anticipating a hefty 120% surge in earnings and a remarkable 250% boost in sales for the upcoming quarters, IMMERSION’s solid groundwork is hard to ignore.
DHI Group’s Professional Pivot
DHI Group, another Zacks Rank #1 (Strong Buy), operates specialized websites catering to professional communities. The company’s noteworthy earnings estimate revision for the current fiscal year hints at substantial growth prospects. With shares finding solid support at the 50-day moving average and experiencing an impressive 30% surge from their 2024 low, DHI Group is clearly in favor with market participants.
Closing Thoughts
Small-cap stocks, despite their roller-coaster volatility, present a compelling proposition for investors seeking higher returns. While the erratic price movements may induce moments of nervousness, the underlying potential is simply too enticing to overlook. IMMERSION IMMR, DHI Group DHX, and QuickLogic QUIK stand out as formidable contenders with robust earnings forecasts and recent positive market performance, making them worthy of consideration in a well-rounded investment portfolio.
