The Best Small Stocks To Buy Now
Small stocks to buy now

The Best Small Stocks To Buy Now

Discover the potential of investing in small stocks in the current market scenario. In this guide, we delve deep into the best small stocks to invest in now, backed by expert analysis and testimonials. Learn to navigate the small stocks terrain with insights on market trends, analytics, and selection criteria.

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  • Understanding the dynamics of small stocks in the current market.
  • Criteria to consider when selecting small stocks to invest in.
  • Analysis of the top 10 small stocks to buy now.
  • Expert analysis and market predictions for small stocks in 2023.
  • Real investor testimonials and lessons learned.
  • Frequently asked questions about investing in small stocks.
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Ready to find out all about the small stocks to buy now!

Introduction

The Allure of Investing in Small Stocks

In a market that is constantly evolving, small stocks have emerged as a beacon of opportunity for investors seeking to expand their portfolios. These stocks, typically characterized by their low market capitalization, often offer a unique blend of growth potential and agility, which large-cap stocks might lack. From offering substantial returns to presenting a chance to invest in the next big thing, the allure of small stocks is indeed hard to ignore.

Why “Now” is the Time to Consider Small Stocks

The year 2023 has been witnessing a seismic shift in market trends, with a significant uptick in the growth trajectories of many small-cap companies. A convergence of technological advancements and innovative business models has created a ripe environment for these stocks to flourish. As we navigate through this period of market transition, “now” presents itself as an opportune time to consider diversifying your investment portfolio with small stocks.

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Understanding Small Stocks

Definition of Small Stocks

Small stocks, also known as small-cap stocks, refer to the shares of companies with a smaller market capitalization, usually ranging from $300 million to $2 billion. These stocks are known for their high growth potential, albeit accompanied by a higher risk profile compared to their large-cap counterparts.

The Potential of Small Stocks in Current Market

In the current market, small stocks are carving out a niche for themselves, thriving amidst dynamic shifts in consumer preferences and technological landscapes. Investors are increasingly eyeing these stocks as a pathway to substantial returns, given their propensity to respond swiftly to market changes and innovative approaches.

Risks Associated with Small Stocks Investment

However, investing in small stocks is not devoid of risks. They are often more volatile and susceptible to market fluctuations. Furthermore, these companies might have limited resources, making them more vulnerable during economic downturns. Thus, a well-informed approach, grounded in thorough research and analysis, is vital when considering investing in small stocks.

Criteria for Selecting Small Stocks to Buy Now

Evaluating Company Fundamentals

Before you embark on your investment journey, evaluating company fundamentals is crucial. Look for companies with strong financials, adept management, and a proven track record of stability and growth. Scrutinize balance sheets, income statements, and cash flow statements to get an insight into the company’s financial health.

Growth Prospects

Investing in small stocks is often propelled by the growth prospects they offer. Consider the company's growth trajectory, their plans for expansion, and how they intend to carve out a niche in their respective markets. A company with a clear growth strategy is often a safer bet.

Keeping an eye on industry trends is essential. Understanding the broader market dynamics, including consumer trends and technological advancements, can help you identify promising small stocks. Align your investment choices with industries showcasing strong growth potential and resilience.

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Top 10 Small Stocks to Buy Now

Methodology

To compile our list of the best small-cap growth stocks, we first listed down all the small-cap stocks in Janus Henderson's Triton Fund Holdings portfolio. Then, the number of hedge funds that had invested in them during Q4 2022 was determined through Insider Monkey's survey of 943 funds. Out of the 28 firms identified, the top ten small-cap stocks are listed below.

10 Best Small-Cap Growth Stocks to Buy Now

10. National Vision Holdings, Inc. (NASDAQ:EYE)

Number of Hedge Fund Investors in Q4 2022: 14

National Vision Holdings, Inc. (NASDAQ:EYE) is a specialty retailer based in Duluth, Georgia. As the name suggests, the firm sells optical products.

14 of the 943 hedge funds had bought the firm's shares during last year's fourth quarter. National Vision Holdings, Inc. (NASDAQ:EYE)'s largest investor is Henry Ellenbogen's Durable Capital Partners with a $119 million stake.

Along with SomaLogic, Inc. (NASDAQ:SLGC), Akero Therapeutics, Inc. (NASDAQ:AKRO), and Mirion Technologies, Inc. (NYSE:MIR), National Vision Holdings, Inc. (NASDAQ:EYE) is a top small-cap growth stock.

9. OmniAb, Inc. (NASDAQ:OABI)

Number of Hedge Fund Investors in Q4 2022: 16

OmniAb, Inc. (NASDAQ:OABI) is a biotechnology company headquartered in Emeryville, California. The firm was set up in 2012. It is one of the more interesting biotechnology companies which has a platform to generate antibodies and other substances to aid in drug development. OmniAb, Inc. (NASDAQ:OABI) owns a platform of animal intelligence that uses rats, chickens, and mice to generate antibodies.

After digging through 943 hedge funds for their Q4 2022 portfolios, Insider Monkey discovered that 16 had held a stake in the OmniAb, Inc. (NASDAQ:OABI).

8. SMART Global Holdings, Inc. (NASDAQ:SGH)

Number of Hedge Fund Investors in Q4 2022: 17

SMART Global Holdings, Inc. (NASDAQ:SGH) is a semiconductor firm headquartered in Milpitas, California. The company designs and sells memory modules, provides supply chain services, and computing solutions.

By the end of last year's fourth quarter, 17 of the 943 hedge funds part of Insider Monkey's database had held a stake in SMART Global Holdings, Inc. (NASDAQ:SGH). Out of these, the firm's largest investor is Jonathan Guo's Yiheng Capital with a $43.9 million stake that comes courtesy of 2.9 million shares.

7. LiveRamp Holdings, Inc. (NYSE:RAMP)

Number of Hedge Fund Investors in Q4 2022: 17

LiveRamp Holdings, Inc. (NYSE:RAMP) is a technology company headquartered in San Francisco, California. The firm provides data management platforms such as identity management, data integration, and data enablement.

Insider Monkey took a look at 943 hedge funds for their investments as of December 2022 and found out that 17 had invested in LiveRamp Holdings, Inc. (NYSE:RAMP). ‘

6. Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)

Number of Hedge Fund Investors in Q4 2022: 17

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) is a biotechnology company that was set up in 1987 and is headquartered in San Diego, California. The firm develops several different technologies to treat or manage myeloma, osteoporosis, COVID-19, pneumonia, lymphoma, and other diseases. Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) also has partnerships with all kinds of pharmaceutical firms such as Pfizer, Merck, Amgen, and Gilead.

During 2022's final quarter, 17 of the 943 hedge funds surveyed by Insider Monkey had bought Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)'s shares. Out of these, the firm's largest investor is Ian Simm's Impax Asset Management since it owns 234,320 shares that are worth $15 million.

Akero Therapeutics, Inc. (NASDAQ:AKRO), Ligand Pharmaceuticals Incorporated (NASDAQ:LGND), SomaLogic, Inc. (NASDAQ:SLGC), and Mirion Technologies, Inc. (NYSE:MIR) are some great small-cap growth stocks.

5. Stem, Inc. (NYSE:STEM)

Number of Hedge Fund Investors in Q4 2022: 25

Stem, Inc. (NYSE:STEM) is another technology company headquartered in San Francisco, California. It operates as an energy storage provider that sells to independent power producers and renewable energy companies. Stem, Inc. (NYSE:STEM) also has an artificial intelligence platform.

As of Q4 2022, 25 of the 943 hedge funds part of Insider Monkey’s database had invested in the firm. Out of these, Stem, Inc. (NYSE:STEM)’s largest shareholder in our database is Jos Shaver’s Electron Capital Partners since it owns 4.8 million shares that are worth $43 million.

4. Leslie’s, Inc. (NASDAQ:LESL)

Number of Hedge Fund Investors in Q4 2022: 27

Leslie’s, Inc. (NASDAQ:LESL) is a specialty retailer headquartered in Phoenix, Arizona. The firm provides pool and spa supplies to all kinds of customers such as residential and commercial. Its products and services include chemicals, cleaning equipment, and repair and maintenance services.

As of Q4 2022, 27 of the 943 hedge funds part of Insider Monkey’s database had held a stake in the company. Leslie’s, Inc. (NASDAQ:LESL)’s largest investor in our database is Amy Minella’s Cardinal Capital with a $49 million stake.

3. Mirion Technologies, Inc. (NYSE:MIR)

Number of Hedge Fund Investors in Q4 2022: 28

Mirion Technologies, Inc. (NYSE:MIR) is an industrial equipment company headquartered in Atlanta, Georgia. The firm provides a variety of products for medical imaging, cancer treatment, nuclear medicine, nuclear medicines, radiation contamination products and more.

Insider Monkey dug through 943 hedge funds for their December quarter of 2022 investments and found out that 28 had bought Mirion Technologies, Inc. (NYSE:MIR)’s shares. Out of these, the firm’s largest investor in our database is Anand Parekh’s Alyeska Investment Group since it owns 7.7 million shares that are worth $51 million.

2. Akero Therapeutics, Inc. (NASDAQ:AKRO)

Number of Hedge Fund Investors in Q4 2022: 32

Akero Therapeutics, Inc. (NASDAQ:AKRO) is a biotechnology firm operating out of San Francisco, California. It develops treatments for metabolic disorders including those that manage cellular stress and the processing of carbohydrates and proteins. Akero Therapeutics, Inc. (NASDAQ:AKRO) is a relatively young company since it was set up in 2017.

After looking at 943 hedge funds for their fourth quarter of 2022 shareholdings, Insider Monkey found that 32 had invested in the firm. Akero Therapeutics, Inc. (NASDAQ:AKRO)’s largest shareholder is David Witzke and Michael Gregory’s Avidity Partners Management with a $209 million stake.

1. SomaLogic, Inc. (NASDAQ:SLGC)

Number of Hedge Fund Investors in Q4 2022: 33

SomaLogic, Inc. (NASDAQ:SLGC) is a health information services provider headquartered in Boulder, Colorado. The firm develops products that enable protein detection during the analysis of biological samples.

32 of the 943 hedge funds part of Insider Monkey’s Q4 2022 database had bought a stake in SomaLogic, Inc. (NASDAQ:SLGC).  is the firm’s largest investor since it owns Eli Casdin’s Casdin Capital shares that are worth $31 million.

Disclosure: The recommendations were originally published on Insider Monkey.

Expert Opinions on Small Stocks to Buy Now

nalyst Predictions including analytics and stats

As we delve deeper into 2023, market analysts have their eyes set on several promising small stocks. According to Market Analysis Reports, experts are predicting a bullish trend in sectors such as technology and healthcare. Recent stats indicate a projected growth rate of X% in the small stocks segment, with specific stocks poised to outshine others.

The current market trends indicate a growing interest in sustainable and technology-driven businesses. The forecast for the year hints at a positive momentum, with small stocks expected to benefit from the ongoing economic recovery and innovation surge. Stay abreast with the latest Financial News to navigate these trends adeptly.


Small stocks to buy now: conclusion

In this guide, we explored the dynamic world of small stocks, delving into their potential in the current market scenario. From understanding the very essence of small stocks to analyzing the top contenders in 2023, we provided a comprehensive view to aid your investment decisions.

Final Thoughts

As we stand at the cusp of a new era in the stock market, small stocks emerge as potent players, ready to carve out their success stories. Armed with knowledge and insights, it's time to consider diversifying your investment portfolio with small stocks, possibly opening doors to lucrative

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Small stocks to buy now: FAQ

What are the characteristics of small stocks?

Small stocks are characterized by their low market capitalization, high growth potential, and a higher degree of volatility compared to large-cap stocks.

Why is now a good time to invest in small stocks?

The current market trends, coupled with the innovative approaches adopted by small-cap companies, make “now” an opportune time for investing in small stocks, potentially leading to substantial returns.

What should be considered before buying small stocks?

Before investing, consider factors such as the company’s financial health, growth prospects, industry trends, and the inherent risks associated with small stocks.

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