Stocks are showing signs of life in 2023. And if you have a tolerance for risk and are willing to look for stocks to trade, the small-cap sector is one area to find stocks to watch. Historically, small-cap stocks tend to perform very well when market sentiment is moving from bearish to bullish. These stocks can be volatile, but at the same time, small increases in their stock price can mean big gains for your portfolio.
To find these stocks to watch, I used a stock screener looking for small-cap stocks that had a buy rating and positive news sentiment, but with less than 50% of the relative trading volume. That means there’s reason to believe in the companies, but the stock is still undiscovered. And that means retail investors still have an opportunity to benefit from taking a position.
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