Happy New Year. So, how do we get that 40% return I demand, try, aim for each year on my pension. Doesn’t happen every year. Some like 2020, 2021 are much better than others like last year. But if I hit an average of 20%, I am happy.
So following on from my last column where I said there is talk smaller companies may be the winners, here are more insights I have gathered. I do not own any of the stocks mentioned unless clearly stated and do not intend to.
As measured by the S&P 500 Index, U.S. large-cap stocks don't look as attractive. Investing in them is still too expensive, and the benefits of owning them over risk-free debt are minimal and so smaller companies and mid-cap are favoured in 2023.
As reported by the Wall Street Journal, small-cap shares are cheaper than their larger counterparts, making them more appealing to investors. When dividends are reinvested, small-cap stocks have outperformed large-cap stocks. According to Yahoo Finance, Calavo Growers, Inc. (NASDAQ:CVGW), which pays a quarterly dividend of $0.285 and has a dividend yield of 0.77%, is one of the best small-cap dividend stocks to buy now. The company has consistently paid dividends since it went public in 2002, making it one of our best dividend stocks. Due to its dividend consistency, it is a good choice for dividend portfolios alongside the likes of Caterpillar Inc. (NYSE:CAT), Chevron Corporation (NYSE:CVX), and Pentair plc (NYSE:PNR).
Nasdaq listed H&E Equipment Services (HEES) and Patrick Industries (PATK) as two small-cap stocks that are rated as Strong Buys. Currently, H&E shares are trading at $40.73, and their average target of $52 implies a gain of 28% over the next year. Having a market cap around $1.5 billion, H&E has small-cap credentials by US standards.
PATK shares are rated a Buy as well, with a $60 price target. With the figure met, investors will pocket gains of 25% in a year.
Yahoo Finance’s list of top small cap stocks includes:
- SmartRent, Inc. (NASDAQ:SMRT)
- PubMatic, Inc. (NASDAQ:PUBM)
- Upstart Holdings, Inc. (NASDAQ:UPST)
- Axcelis Technologies Inc. (NASDAQ:ACLS) (I used to own)
- GoPro, Inc. (NASDAQ:GPRO)
Yahoo Finance shares 15 stocks that will double in 2023 they think (seems optimistic).
- Blink Charging Co. (NASDAQ:BLNK)
- Lithium Americas Corp. (NYSE:LAC)
- The Lovesac Company (NASDAQ:LOVE)
- Riot Blockchain, Inc (NASDAQ:RIOT)
- AppHarvest, Inc. (NASDAQ:APPH)
- Solid Power, Inc. (NASDAQ:SLDP)
- EXACT Sciences Corporation (NASDAQ:EXAS)
- Transocean Ltd (NYSE:RIG)
- Ginkgo Bioworks Holdings Inc (NYSE:DNA)
- Zscaler, Inc. (NASDAQ:ZS)
- Cloudflare, Inc. (NYSE:NET)
- Bill.com Holdings, Inc. (NYSE:BILL)
- Marvell Technology Inc (NASDAQ:MRVL)
- Atlassian Corporation Plc (NASDAQ:TEAM)
- Block, Inc. (NYSE:SQ)
Below are 7 small-cap stocks well-positioned for market trends likely to stick around through 2023.
- Boot Barn (NYSE:BOOT)
- Hudbay Minerals (NYSE:HBM)
- Gossamer Bio (NASDAQ:GOSS)
- Vivid Seats (NASDAQ:SEAT)
- Maxar Technologies (NYSE:MAXR)
- Hain Celestial Group (NASDAQ:HAIN)
- ThredUp (NASDAQ:TDUP)
Like I wrote above. I don’t own these and will share my own insights in the next column and on my Telegram channel, you can find it through www.campaignforamillion.com
