Best Small-Cap Tech Stocks to Buy The Motley Fool

As of the date this article was written, the author doesn’t own any of the above stocks. The most recent being a proposed increase in the company’s authorized share count. Shareholders are being pushed to vote YES on increasing this figure with a goal of helping with exploring strategic alternatives including the sale of the company. While it might seem like a minor detail, speed is everything in this digitalized economy. After all, nothing frustrates a would-be consumer than slow, cumbersome access. The ability to improve the provider-user interface makes FSLY stock a compelling buy.

It’s calculated by multiplying the share price by the number of shares. This is a list of stocks to watch for swing trading and day trading. fxcm broker review If you are a stock market beginner and want to learn how to swing trade stocks,
read Swing Trading Strategy
and Find Trending Stocks.

However, the mine is not expected to be operational until 2024 at the earliest. And, Seabridge has requested to have an extension until 2026. That may be a tough ask for investors to buy right now, but it may be worth putting on your watchlist. As I’ve pointed out, CEO Nikesh Arora has also done a phenomenal job of adding to Palo Alto’s reach with a steady diet of bolt-on acquisitions. These buyouts give Palo Alto a way to expand its product ecosystem and cross-sell its solutions to reach new businesses. Over the past three and a half years, Wall Street’s major stock indexes have fluctuated between bear and bull markets.

Rigetti is expecting to launch its Ankaa-1 quantum processor to customers in mid-2023. It was also awarded a US Patent titled “Parametrically activated quantum logic gates,” helping to add to the positive sentiment in the stock market. Shares of Rigetti Computing city index review stock continued climbing higher in the stock market today. The penny stock made a rebound after a sell-off late last month. The typical definition involved stocks trading for less than $5, but it’s more than just assuming they’re all start-ups.

  • To get intraday penny stocks update (every 5-10 minutes), please signup for a free account.
  • To use the trend following strategy, any stock that is on our watchlist must have an established trend.
  • We then take a contrarian approach to what the rest of the market is thinking by performing further due diligence.

If you’re a short-term trader, making money has been exceptionally challenging. Jessica is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock five key trends in video game software design market education. Remember that past performance is no guarantee of future results, however, and investing has inherent risks. Don’t expect to get rich overnight, and research and planning are paramount to finding success.

What Are Small Cap Stocks?

Unlike large-caps, small-caps did not reach a new low in the third quarter of 2022. For Q3 2022, the small-cap Russell 2000 Index dropped 2.2%, ahead of its large-cap counterpart, the Russell 1000 Index, which was down 4.6% during the same period. A cheap stock is a term that means different things to different people. For some, a cheap stock has a share price in the low single digits, like penny stocks under $1.

  • Over the next 12 months, Berkshire is expected to collect more than $6 billion in dividend income.
  • Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
  • And while ESG initiatives are continuing to draw scrutiny, AAR was also named one of America’s Most Responsible Companies by Newsweek magazine for 2023.
  • Said differently, a company’s share price reflects its current and future prospects.

Average volume went from less than 10 million shares a day to more than 350 million shares … ENTX is one to keep an eye on when volume spikes. Read on to find out about seven small-cap stocks worth watching in 2023 and why I think they could be on their way to breaking out. I’ll also answer some frequently asked questions about small caps. These companies may not be household names, but there’s a lot of potential in some of them.

Albeit through ups and downs along the way, the share price has climbed 115% over the last year and looks to keep going. NOG has also recently introduced a plan to pay its shareholders a 2.09% dividend yield. They tend to have significant growth potential, but they also are generally less stable than their larger, more established peers. KeyBanc also raises its price target on Club holding Alphabet (GOOGL) to $155 a share, up from $145, while maintaining an overweight rating on shares.

Do you want to play it safer with stocks that may make smaller gains and losses over time? Or are you more interested in a higher risk/higher reward style of trading? You decide what fits you best — then focus on learning all you can about your go-to strategy. A small-cap stock is a stock with a market capitalization between $100 million and $2 billion. If you do a quick search on YouTube and navigate to the company’s page, you’ll see plenty of videos on its tech. This includes augmented reality technology, lidar for automotive applications, and even a concept for tabletop gaming.

It’s also important to understand the risks and that investing in a low-cost index fund is far safer than picking individual stocks. You can also look at our page on stocks under $20 for investment ideas. Therefore, a company’s stock price reflects a series of assumptions and projections about its future cash-generation potential and not just its ability to produce cash today.


This model seeks to assign an absolute dollar value to a stock today based on projected earnings and other assumptions that will unfold starting from years in the future into perpetuity. Wall Street relies on the model as it loosely tells us how much cash a business could provide investors, with free cash flow being the company’s concrete, intrinsic value. Since this is a stocks to watch list for traders, it is mainly based on technical analysis and the trend momentum of a stock. It does not take into account fundamental data of companies in the screening, so long term investors may need to find fundamental information elsewhere. Let’s go over a trend following strategy that we use to swing trade stocks. To use the trend following strategy, any stock that is on our watchlist must have an established trend.

With HP’s stock price down 10% year to date compared to a 21% fall for the S&P 500, the company has notably outperformed the overall market during the bear market. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

As more and more vehicle manufacturers turn to electric vehicles, Blink will continue to be at the forefront. The same is likely true, and it’s a great time to buy Bank of America stock. Columbus McKinnon is known for its lifting and conveyor equipment. The company uses intelligent motion technology to create unique solutions for its customer base.

Best small-cap stocks to buy right now

Small-cap tech stocks — usually defined as technology companies with market capitalizations of no more than $2 billion — can be risky investments. We have selected the following small-cap stocks based on market capitalizations ranging from $300 million to $2 billion as of November 3. We have shortlisted the stocks that have solid growth fundamentals, positive analyst ratings, and the capacity to drive resilient returns in the future. The hedge fund sentiment was assessed from Insider Monkey’s database of elite hedge funds, tracked as of the second quarter of 2022.

Small-cap stocks in 2023

The good news is that there are ways to purchase low price stocks that will leave more cash in your pocket. This article will discuss how to buy cheap stocks and offer the theory and practical steps. There’s a lot to consider when researching trading opportunities. Smart traders always look at the big picture … That’s what helps them find the top trading ideas. It depends on the size of your account, your trading plan, goals, and risk tolerance. While small-caps’ lower prices may be attractive to traders with smaller accounts, they may be riskier trades.

As InvestorPlace’s Robert Lakin wrote that same day, investors jumped in on news of the biotech company’s progress with its antiviral Covid-19 drug candidates. AppHarvest’s sales are slim and the company is spending heavily to establish new farms. But the company has demonstrated it can produce healthful crops more sustainably, and it is flush with cash after its IPO in early 2021. At the time of this writing, AppHarvest has minimal debt, too. If sustainable food production is something that matters to you, then AppHarvest is worth considering.

Step 3: Understand the company.

To find profitable trade setups, don’t forget to check out the Top Stocks List. These are the small-cap stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profit can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows that you’re paying less for each dollar of profit generated.

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