As 2023 comes to an end, many investors have redirected their focus to small-cap stocks, intrigued by the promise of small caps’ high-growth potential at attractive valuations. With a market capitalization range of $300 million to $2 billion, small-cap companies showcase the flexibility and innovation needed to disrupt industries and achieve substantial growth. In the month of December, when the market tends to favor smaller companies, investors are presented with a unique opportunity to locate hidden gems that carry the potential for significant returns.
In this article, we discuss the top ten small caps to have on your radar this December 2023.
Top 10 Small Cap Stocks to Watch:
1. ACM Research (ACMR): 42.7% 5-Year Average EPS Growth Forecast
ACM Research is a leading developer of analytical chemistry instrumentation and software, catering to diverse industries such as pharmaceuticals, food and beverage, and environmental testing. The company's innovative solutions are driving improvements in the efficiency and accuracy of laboratory testing.
2. Titan Machinery (TITN): 25.0% 5-Year Average EPS Growth Forecast
Titan Machinery holds a leading position as a distributor of agricultural machinery and parts, serving farmers and ranchers in the United States. The company benefits from ongoing demand for agricultural equipment, fueled by farmers' investments in technology to enhance productivity.
3. Stride (LRN): 20.0% 5-Year Average EPS Growth Forecast
Stride, a leading provider of online and blended learning solutions for K-12 students, brags a 20.0% 5-Year Average EPS Growth Forecast. The company's offerings are experiencing high demand as parents explore alternative education options for their children.
4. Digi International (DGII): 17.0% 5-Year Average EPS Growth Forecast
Digi International, is a global provider of IoT (Internet of Things) connectivity and edge computing solutions. The company's products are enabling businesses to connect their devices and collect data, which can be used to improve efficiency, reduce costs, and create new products and services.
5. NMI Holdings (NMIH): 14.5% 5-Year Average EPS Growth Forecast
NMI Holdings is a leading provider of mortgage origination and servicing solutions to community banks and credit unions. The company's business thrives on rising interest rates, driving increased demand for mortgage refinancing.
6. The Bancorp (TBBK): 12.0% 5-Year Average EPS Growth Forecast
The Bancorp is a regional bank holding company operating in seven states: California, Colorado, Nevada, New Mexico, Texas, Utah, and Wyoming. The company's focus on small-business lending and its strong balance sheet have positioned it well for continued growth.
7. Hess Midstream (HESM): 11.1% 5-Year Average EPS Growth Forecast
Hess Midstream is a master limited partnership that owns and operates midstream energy assets in the United States. The company's assets include pipelines, storage terminals, and processing facilities. Hess Midstream benefits from strong demand for energy infrastructure as the United States continues to expand its domestic energy production.
8. Sterling Infrastructure (STRL): 11.0% 5-Year Average EPS Growth Forecast
As a real estate investment trust (REIT), Sterling Infrastructure invests in infrastructure assets, including airports, toll roads, and utilities. The company's portfolio generates stable and predictable cash flows, appealing to income investors.
9. First Financial Bancorp (FFBC): 10.0% 5-Year Average EPS Growth Forecast
First Financial Bancorp is a regional bank holding company operating in California and Nevada. The company's focus on commercial lending and its strong balance sheet have positioned it well for continued growth.
10. OFG Bancorp (OFG): 8.0% 5-Year Average EPS Growth Forecast
Operating as a regional bank holding company in California, OFG Bancorp maintains an 8.0% 5-Year Average EPS Growth Forecast. The company's emphasis on small-business lending and a strong balance sheet fortifies its position for sustained growth.
