7 great small cap stocks to buy before the end of the year

If you are an investor, you cannot afford to buy small cap stocks.

Small cap stocks don’t get the same kind of publicity as their mega cap siblings. They’re not going to lead a segment on CNBC or the homepage of the the wall street journal on a daily basis. With market caps ranging from around $300 million to $2 billion, small cap stocks tend to go under the radar.

But some of them are solid companies and great small cap stocks to buy. They can bloat your portfolio just as well as a mega-cap – a 15% return in a small-cap stock is just as good as a 15% return elsewhere, right?

Since these seven small-cap stocks to buy aren’t as well-known, you’re more likely to find ones that might be underestimated. That’s where the Portfolio Grader comes in – my exclusive free tool that grades stocks with a letter grade, based on both buying momentum and qualitative metrics.

ENPH Enphase Energy $299.34
ACLS Axcelis Technologies $61.39
AMN Health care $126.01
AOSL Alpha and Omega Semiconductor $32.29
ARLP Alliance Resource Partners $23.96
AT SIX AdvanSix $35.73
ATKR Atkore $94.20

Enphase Energy (ENPH)

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Enphase Energy (NASDAQ:ENPH) manufactures solar power inverters and battery storage products. Customers can install the company’s microinverters in their homes, store the accumulated energy on a battery, and use it to power their home during a utility outage.

A smartphone app lets customers see how much energy they have stored and direct power to essential devices in the event of a grid outage.

So far this year, Wall Street is a big fan. Even though the big stock market is in the red, ENPH stock is up nearly 30% on the year, and it still seems to have more room to manoeuvre. Analysts have a consensus price target of $310, giving ENPH stock another 7% of expected growth.

Enphase also consistently exceeds expectations with its quarterly earnings reports, and Q3 was no different. Revenue of $634.71 million beat expectations of $615.85 million; earnings per share of $1.25 were above expectations of $1.09, making it one of the small cap stocks to buy on expectations of continued growth.

ENPH stock appears to have a bright future and has an “A” rating in the Portfolio Grader.

Axcelis Technologies (ACLS)

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Axcelis Technologies (NASDAQ:ACLS) didn’t hold up so well, but that’s to be expected given that tech stocks in general are having a bad year. So far in 2022, ACLS stock is down 23%, but I’m not worried.

Axcelis manufactures and markets the new generation Purion Platforms with ion implantation technology used to manufacture semiconductors. The Purion platform helps semiconductor companies maximize yields and reduce production issues.

Semiconductors have been in the headlines all year due to a combination of Covid shutdowns, huge demand for game consoles and other supply chain and industry disruptions. electronics combined to create a huge shortage of semiconductors over the past year. As this shortage begins to ease, it’s clear that demand for semiconductors – and companies like Axcelis – will continue to be high.

Second quarter earnings exceeded expectations in terms of revenue and earnings. Revenue was $221.18 million, beating expectations of $214.36 million. EPS of $1.32 was better than expectations of $1.04 per share.

ACLS will release its third quarter results on November 3. The stock has an “A” rating in my Portfolio Grader.

AMN Health (AMN)

AMN Health Services website homepage.  AMN Healthcare logo visible.

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As baby boomers enter their twilight years and Gen Xers age rapidly, the need for health care is greater than ever. AMN Health (NYSE:AMN) is a leading provider of nurse staffing services for hospitals and healthcare facilities.

With over 500 customers, AMN provides travel nurses, rapid response healthcare, staff for schools and internationally. These services seem to be in demand. The AMN estimates that a half a million registered nurses will retire by the end of this year. He also estimates that there will be a shortage of 139,000 doctors in the United States by 2033.

Business so far is good: Q2 revenue was $1.43 billion, beating expectations of $1.37 million. EPS of $3.31 beat expectations of $2.99 ​​per share.

AMN is roughly flat for the year, but reports third quarter results on November 3. It has an “A” grade in the Portfolio Grader.

Alpha and Omega Semiconductor (AOSL)

AI.  Printed circuit board.  Technological background.  CPU concept of central computer processors.  Motherboard digital chip.  Training in technical sciences.  Built-in communication processor.  3D illustration representing semiconductor stocks

Source: Shutterstock

Alpha and Omega Semiconductor (NASDAQ:AOSL) manufactures products used in flat panel televisions, LED lighting, smartphones, batteries, computer equipment and telecommunications equipment.

Its most recent product, a smart motor module which is supposed to be the smallest in the industry, powers PC and server fans, seat cooling and home appliances.

So far this year, the stock is down 47%, but it looks ripe for a turnaround, as the company plans to report its first quarter 2023 results on November 3. report with high and low beats of $194.96 million and earnings of 95 cents per share.

The AOSL stock has a “B” rating in the Portfolio Grader.

Alliance Resource Partners (ARLP)

A magnifying glass zooms in on the Alliance Resource Partners, LP (ARLP) logo

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There are two reasons to love Alliance Resource Partners (NASDAQ:ARLP) as an excellent small-cap stock.

The first is its position in coal – ARLP is one of the leading coal producers in the eastern United States. Coal is still an important energy source for millions of people, even as the nation begins to slowly shift to alternative, cleaner energy sources.

High coal prices are boosting company revenues and profit margins. Alliance announcement that it sold 9.185 million tonnes of coal in the quarter ending September 30 at an average price of $59.94, compared to 8.494 million tonnes a year ago at an average price of just $42.65 the ton.

But it’s not a one trick pony. Alliance is also working to diversify its business by investing in an electric vehicle charging station company francis as well as manufacturer of electric motors Electric Infinity.

Shares of the Master LP are up 90% so far in 2022, and it has an “A” rating in the Portfolio Grader.

AdvanSix (ASIX)

A magnifying glass zooms in on the AdvanSix, Inc. (ASIX) logo on a webpage

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You may not be aware AdvanSix (NYSE:AT SIX), but don’t be surprised if you have benefited from one of its products. The chemical manufacturer produces nylon resin, which is used in some products ranging from carpeting to food packaging to plastics and paint products.

AdvanSix is ​​also the world’s largest single-site producer of ammonium sulfate fertilizer, which is a good place to invest considering the Earth is home to 8 billion people and needs high yields to feed them. .

Second-quarter earnings were mixed, with revenue of $583.74 million beating expectations of $557.5 million, but EPS of $2.30 down nine cents from analysts’ estimates.

Wall Street will be looking a little better when AdvanSix releases its third quarter results on Nov. 4. For now, it has a “B” rating in the Portfolio Grader.

Atkore (ATKR)

A network of electrical conduits are lined up in a row across the ceiling of a room.

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Atkore (NYSE:ATKR) manufactures and sells an assortment of electrical and mechanical products – items such as cable management, conduit, PVC and metal tubing, cable systems, barbed wire and security products.

And the business is growing. It made a total of six acquisitions to expand its presence in 2022 with transactions totaling $310 million.

Atkore stock is down 16% year-to-date, but it is lagging, rising 20% ​​just in the past month. Quarterly earnings are also helping to boost the stock’s Portfolio Grader rating as the company consistently exceeds revenue and EPS expectations. In the third quarter, revenue of $1.06 million was above the $1.01 billion expected by Wall Street, and EPS of $6.07 beat expectations of $5.22 per share.

Atkore stock has a “B” rating in the Portfolio Grader.

As of the date of publication, Louis Navellier holds positions in ENPH, ACLS, AMN, AOSL, ARLP, ASIX and ATKR. The InvestorPlace research staff member primarily responsible for this article has not held (directly or indirectly) any position in the securities mentioned in this article.

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