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3 Undiscovered Small Caps: "Pizzazz for your Portfolio"
02/07/2020 5:00 am EST
Corporate cash reserves are around $2.2 trillion, and no doubt, some of that will be used to take over other companies, many in the technology arena, where internet of technology, the 5G launch, and cloud computing are disrupting almost every industry, asserts Nancy Zambell, editor of Wall Street's Best Investments.
Valuations in some industries — like energy and industrials — are extremely low, yet energy demand — especially in Asia — continues to expeditiously rise, and the almost-cessation of the trade war should help cyclical companies.
With those positive factors in mind, I decided to delve deeper into the tech, energy, and industrial sectors, to find some stocks with excellent potential.
SharpSpring, Inc. (SHSP)
SharpSpring is a cloud-based marketing technology company that offers marketing automation solution for small and mid-size businesses. Analysts are forecasting 25% annual growth over the next five years.
The company participates in a $5.1 billion marketplace that is growing at a 20% annual rate. Yet, its market cap is just $149 million, making it a very small-cap stock.
Ranger Energy Services, Inc. (RNGR)
Another small cap stock with a market capitalization of just $109 million, Ranger provides well service rigs and other services to energy companies in the U.S.
The company has some deep-pocket customers, including Noble Energy, Anadarko, Hess, EOG Resources, and Chevron. With energy demand spiking up and valuations so low, it might be worth investing a few dollars.
LSI Industries Inc. (LYTS)
With a market cap of just $170 million, LSI is another stock without much Wall Street attention. The company makes lighting and graphics products that offer visual image solutions to corporate customers around the world.
LSI is expected to grow at a 25% annual rate over the next five years. The stock may be small cap, but it also has a healthy 3.1% dividend yield.
These undiscovered companies are also all small-caps, so a degree of speculation exists. Please don’t load up on them, but do consider dipping your toes into one or more. They just might add some pizzazz to your portfolio!
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