Tiny Stocks To Buy
Small-cap stocks (opens in new tab) tend to suffer more than their larger cap peers when equities are broadly struggling, and 2022 was no exception. But if there's a sliver of a silver lining to be found, it's that analysts say the best small-cap stocks to buy are priced for exceptional returns in 2023.
tiny stocks to buy
By the same token, however, small-cap stocks also tend to outperform the broader market when equities are catching a bid. No one can know for certain if we've already seen the bottom of our current bear market (opens in new tab). Once the equity malaise lifts, however, the best small-cap stocks to buy should theoretically be among the market's top outperformers.
In order to get an idea of where these outsized potential returns might be hiding, we turned to Wall Street analysts to find the best small-cap stocks to buy for 2023. To that end, we screened the Russell 2000 for analysts' top-rated small-cap stocks.
We further limited ourselves to stocks with at least 10 Strong Buy recommendations (opens in new tab) (in order to ensure adequate analyst coverage and sample size). Lastly, we dug into research, fundamental factors, valuation, analysts' estimates and other data on the top names.
Biotech stocks (opens in new tab) held up well in an otherwise terrible 2022. Indeed, the benchmark Nasdaq Biotechnology Index was off 10% for the year-to-date through mid-December. That's downright defensive compared to the broader market's loss of 19% over the same span.
Of the 23 analysts covering FATE tracked by S&P Global Market Intelligence, 15 call it a Strong Buy, four say Buy, three have it at Hold and one says Sell. That works out to a consensus recommendation of Buy, with high conviction to boot. As such, FATE easily makes the list of analysts' best small-cap stocks to buy for 2023.
Of the 22 analysts covering ARVN tracked by S&P Global Market Intelligence, 13 rate it a Strong Buy, six say Buy and three have it at Hold. What should really capture the attention of investors seeking out the best small-cap stocks, however, is the Street's average target price.
At $83.62, analysts collectively give ARVN implied upside of more than 130% in the next 12 months or so. That sort of potential return helps explain why ARVN makes any list of the best small-cap stocks to buy for 2023.
Of the 17 analysts covering the stock tracked by S&P Global Market Intelligence, 11 rate DNLI at Strong Buy, four say Buy and two have it at Hold. Their average target price of $64.47 gives the stock implied upside of about 125% in the next 12 months or so. Little wonder, then, that DNLI makes the list of best small-cap stocks to buy for 2023 and beyond.
True, clinical-stage biotech stocks are speculative, but analysts love Karuna's chances. Of the 19 analysts covering KRTX tracked by S&P Global Market Intelligence, 13 rate it at Strong Buy and six call it a Buy.
Rocket Pharmaceuticals (RCKT (opens in new tab)) is another small-cap biotech with promising drugs under development, and it currently tops the list of Wall Street's favorite small-cap stocks to buy now.
Indeed, with a consensus recommendation score of 1.20, RCKT is a high-conviction Strong Buy. As with all such stocks in its sector, caution is warranted. Names like RCKT are speculative (opens in new tab), lest we forget.
Of the 15 analysts covering RCKT tracked by S&P Global Market Intelligence, 12 rate it at Strong Buy and three call it a Buy. Shares were up about 2% for the year-to-date through Dec. 16, and with an average price target of $52.46, the Street expects them to more than double in 2023. That's the kind of potential return investors should expect from the best small-cap stocks to buy for 2023.
Oftentimes, companies which fly under the radar can avoid much of the broader market chaos. And, in particular, small-cap stocks tend to be more domestic in nature, which insulates them from the geopolitical shocks and foreign exchange swings which have tripped up many multinational companies lately. In addition to these specific advantages, U.S. small-cap stocks have historically outperformed their larger peers by a significant margin over a long time horizon. With that in mind, these nine companies look like some of the best small-cap stocks to buy for 2023 and beyond:
Small-cap stocks can be a good investment. They typically have the potential for growth, much larger than large-cap stocks/blue chip companies, so if an investor gets in at a good price, they may see a good return. Small-cap stocks are more risky and volatile than the stocks of larger, more established companies, so investors must take extra care in their analysis before making any investment decisions."}},"@type": "Question","name": "Which Is Better, Small-Cap or Mid-Cap?","acceptedAnswer": "@type": "Answer","text": "Whether small-cap stocks or mid-cap stocks are better depends on the specific company. Any company with good fundamentals, a strong business strategy, smart leadership, and a competitive edge, can be a good investment, whether they are a small- or mid-sized company. Small-cap stocks have more growth potential than mid-cap stocks, so investors may see a better return; however, small-cap stocks are also more risky and volatile than mid-cap stocks, so the loss potential is greater.","@type": "Question","name": "Is Small-Cap Good for the Long Term?","acceptedAnswer": "@type": "Answer","text": "Yes, small-cap stocks can be good for the long term. If you can invest in a small-cap stock that has good fundamentals and overall healthy analysis, the stock will most likely grow over the long term. If you can invest before a bull run on the market and hold the stock for the long term, then you could see a strong financial return."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsWhat Is a Small-Cap Stock?Understanding Small-Cap StocksSmall-Cap vs. Large-CapSmall-Cap vs. Mid-CapSmall-Cap vs. Penny StockPros and ConsHow to InvestSmall-Cap IndexesSmall-Cap Stock FAQsThe Bottom LineStock TradingStock Trading Strategy & EducationWhat Are Small-Cap Stocks, and Are They a Good Investment?ByAdam Barone Full Bio LinkedIn Twitter Adam Barone is an award-winning journalist and the proprietor of ContentOven.com. He has 5+ years of experience as a content strategist/editor.Learn about our editorial policiesUpdated January 29, 2023Reviewed by
Small-cap stocks can be a good investment. They typically have the potential for growth, much larger than large-cap stocks/blue chip companies, so if an investor gets in at a good price, they may see a good return. Small-cap stocks are more risky and volatile than the stocks of larger, more established companies, so investors must take extra care in their analysis before making any investment decisions.
Whether small-cap stocks or mid-cap stocks are better depends on the specific company. Any company with good fundamentals, a strong business strategy, smart leadership, and a competitive edge, can be a good investment, whether they are a small- or mid-sized company. Small-cap stocks have more growth potential than mid-cap stocks, so investors may see a better return; however, small-cap stocks are also more risky and volatile than mid-cap stocks, so the loss potential is greater. 041b061a72