Small-cap stocks attract significant attention from investors due to their more attractive valuations than large-cap peers, presenting opportunities for substantial returns.
This year could mark a turning point for small-cap stocks as they rebound from underperformance, while many larger and mega-cap stocks are perceived as overvalued. With market capitalizations between $300 million and $2 billion, these companies can adapt quickly to market changes and capitalize on niche opportunities.
Despite lagging the broader market since last May, small-cap stocks are trading at more attractive valuation ratios than large-cap stocks. Now could be an opportune time for investors to allocate a portion of their portfolio to these companies. This article presents three of the best small-cap stocks to consider.
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