Small cap stocks may not always get the attention of their larger counterparts, but they often offer significant upside potential for savvy investors. These are companies with a market capitalization of $300 million to $2 billion, making them relatively unknown and undervalued by the market. However, with thorough research and a keen eye, these small cap stocks can be great investments with high growth opportunities.
To help investors uncover these hidden gems, we’ve compiled a list of 12 small cap stocks that have been identified by experts as having high upside potential. These companies span across various industries, including technology, healthcare, and consumer goods, providing a diversified portfolio for investors.
One such stock is Lululemon Athletica Inc. (NASDAQ: LULU), a leading athletic apparel company with a market cap of $29 billion. Despite its large market cap, Lululemon is still considered a small cap stock and has been consistently growing its revenue and earnings over the past few years. Another company on our list is Roku, Inc. (NASDAQ: ROKU), a streaming platform that has seen a surge in demand during the pandemic. With a market cap of $17 billion and continued growth in subscribers, Roku is poised to continue its success in the streaming market.
Investing in small cap stocks does come with its risks, as these companies are often more volatile and less established than their larger counterparts. However, for investors seeking higher returns, these stocks can offer great opportunities for growth. Before making any investment decisions, it’s important to thoroughly research and understand the company’s financials, management, and industry trends. With proper diligence, these 12 small cap stocks could be the next hidden gems in your investment portfolio.