Small-cap stocks , generally defined as businesses with market caps between $300 million and $2 billion, offer high potential upside to investors but are often more volatile than your average stock. These securities are generally not as safe or durable as mega-cap corporations like Microsoft or Berkshire Hathaway . However, the small-cap Russell 2000 Index has outperformed its large-cap S&P 500 counterpart over the last 40 years, which shows the opportunities that exist among these companies. Two small-cap stocks investors should look at in May are Planet 13 Holdings ( OTC:PLNH.F ) and Aterian ( NASDAQ:ATER ) . Here's why. Image source: Getty Images. 1. Planet 13 Holdings Planet 13 is a retail cannabis concept based in Las Vegas. It only owns two stores, but one of them, its Las Vegas Superstore, is one of the largest -- if not the largest -- cannabis dispensaries in the world. The 112,000-square-foot entertainment complex offers all types of … [Read more...] about 2 Top Small-Cap Stocks to Buy in May
Are small cap stocks undervalued
At the Motley Fool, we have a free service called Motley Fool CAPS. In CAPS, you pick the stocks you think will beat the S&P 500 Index (also known as "the market"). In my case, 57% of my stock picks in CAPS beat the market, which means that 43% of my stock picks fail to beat the market. In essence, I am wrong 43% of the time. That's a spectacular failure rate. If I did that in school, I would get an F on my report card. And yet in CAPS I am in the top 1% of stock pickers. So that's fascinating, right? How can I be wrong so often and still crush the market? The main reason is the miracle of compound returns. In a year, one of my stronger stock picks might double or triple. That's a gain of 100% or 200%. But over time, if a stock continues to outperform, the rewards escalate. It might go up 1,000% or 10,000% or 30,000%. And what happens is that your investment in this winner (if you don't sell along the way) becomes larger and larger on a dollar basis. image source: Getty … [Read more...] about You Can Buy a Lot of Bad Stocks and Still Get Rich
Share to Twitter Share to Linkedin Johnson & Johnson stock (NYSE: JNJ) is scheduled to report its Q4 2021 results on Tuesday, January 25. We expect J&J to report revenues and earnings above the consensus estimates. The pharmaceuticals sales will likely be driven by continued market share gains for its cancer drugs, Imbruvica and Darzalex, and immunology drugs, Stelara and Tremfya. However, the company is unlikely to see any meaningful contribution from its Covid-19 vaccine. The Medical Devices business is likely to see higher sales growth with a rise in total procedures volume, though the rise in Covid-19 cases due to the spread of Omicron since December may have impacted the overall segment revenue growth. Not only do we believe J&J will post Q4 results slightly above the street expectations, we find JNJ stock to be attractive at the current levels, and it is likely to rise post Q4 results. Our forecast indicates that J&J’s valuation is … [Read more...] about Will Johnson & Johnson Stock Rise After Q4 Results?
It's been a choppy couple of months for the stock market. With uncertainty around the economy, some investors have fled growth stocks in favor of value. The Vanguard Value ETF returned 6.34% over the last three months at the time of writing, which outperformed the Vanguard Growth ETF 's negative return of 0.18%. Growth stocks, however, are where investors find the big winners over the long term. But finding them at good values can be difficult. The near-term concerns over the prospect of higher interest rates, inflation, and the broader economy are giving investors a chance to find some good deals. Here's why Zoom Video Communications ( NASDAQ:ZM ) , Logitech International ( NASDAQ:LOGI ) , and Avid Technology ( NASDAQ:AVID ) are moving toward the top of my buy list in 2022. Let's find out a bit more about these three growth stocks. Image source: Getty Images. 1. Zoom Video Communications A mad rush for video calls during 2020 pushed Zoom's share … [Read more...] about 3 Growth Stocks Climbing Up My Prospective Buy List
The metaverse could be one of the biggest emerging product and service trends of 2022, but investors don't have to wait to build an early position in this potentially revolutionary trend. Recent market volatility has led to promising players in the space trading at fresh discounts, and some are worth buying before this year is out. With that in mind, a panel of Motley Fool contributors has identified three stocks that are primed to benefit from surging metaverse momentum. Read on to see why they think that these three companies will take your portfolio to the next level. Image source: Getty Images. The social media giant is evolving into a metaverse company Parkev Tatevosian : Meta Platforms ( NASDAQ:FB ) , the company formerly known as Facebook, is arguably the reason why so many people are talking about the metaverse right now. The name change follows a shift in focus for the social media company that has amassed over 3.5 billion monthly active users across its … [Read more...] about 3 Hot Metaverse Stocks to Buy Before 2021 Is Over
Share to Twitter Share to Linkedin Luminar stock , a company that develops lidar sensors for use in self-driving cars, has declined by roughly 15% over the last week (five trading days), underperforming the S&P 500 which was down by about 4%. The stock also remains down by about 17% over the last month. There are likely a couple of factors driving the recent sell-off. Firstly, Luminar issued about $550 million worth of convertible debt last month, while buying back around $250 million of its stock. It’s possible that investors are a bit concerned about these transactions given that the company hasn’t started meaningful commercial operations yet, with profitability and positive cash flows likely several years away. Separately, electric vehicle stocks, in general, have underperformed the market in recent weeks, due to rising bond yields and this could also be hurting Luminar. For perspective, EV bellwether Tesla stock is down by about 17% year-to-date in 2022. … [Read more...] about Why Luminar Stock May See Lower Levels Going Forward
NEW YORK/LONDON: Risk aversion dominated markets on Friday as stocks slumped on Wall Street and in Europe, oil prices fell from seven-year highs earlier in the week and bond prices surged with traders scurrying for the relative safety of government debt. Poor subscriber growth reported late Thursday at Netflix Inc sent its shares plunging 21.8% and cast a pall over a market already shaken by concerns the Federal Reserve will tighten monetary policy too aggressively to fight inflation. Investors are waiting for details from the Fed's policy meeting next week on how it will proceed at a time that inflation is such a hot political issue it could force a more hawkish stance. Data, however, won't begin to show an expected slower pace of rising consumer prices for at least a few months, making Fed Chair Jerome Powell's job more difficult as he tries to calm markets. "We know the Fed is beginning to pivot and the problem is that the inflation numbers are not going to start to trend … [Read more...] about GLOBAL MARKETS-Bond yields tumble as Netflix fuels stock market sell-off
Representative Image Netflix delivered its latest quarter of disappointing subscriber growth during the final three months of last year, a trend that management foresees continuing into the new year as tougher competition is undercutting the video streaming leader. The Los Gatos, California, company added 8.3 million worldwide subscribers during the October-December period, about 200,000 fewer than management had forecast. Besides releasing its fourth-quarter results Thursday, Netflix also projected an increase of 2.5 million subscribers during the first three months of this year, well below analysts' expectations for a gain of 4 million, according to FactSet Research. The disappointing news caused Netflix's stock price to plunge by more than 19% in extended trading after the numbers came out, deepening a steep decline during the past two months. It capped a challenging year for Netflix after it reveled in eye-popping gains during the pandemic lockdowns of 2020 that drove … [Read more...] about Netflix stock plunges as subscriber growth worries deepen
Share to Twitter Share to Linkedin Our theme of Apple Component Supplier Stocks – which includes a diverse set of companies that supply components for Apple’s iPhones and other iDevices, has remained roughly flat year-to-date in 2022, compared to the broader S&P 500 which remains down by about -4%. Over 2021, the theme gained about 17%, underperforming the broader market which gained about 27% over the same period. So what does 2022 hold for Apple supplier stocks? While high-growth technology stocks, in general, have seen some weakness, due to rising bond yields and the Federal Reserves’ hawkish stance, Apple supplier stocks could benefit from the fact that they trade at relatively lower multiples versus other tech stocks (P/S of about 4.7x). Moreover, the semiconductor shortage, which hurt the broader consumer electronics industry, could also ease a bit this year, potentially helping these stocks. That being said, demand for these companies is heavily … [Read more...] about Will Lower Multiple Tech Stocks Do Better In 2022?
What happened The tech-heavy Nasdaq bounced back this morning, after officially hitting a "correction" point -- a 10% top-to-bottom sell-off -- yesterday. Green energy stocks are among today's bigger winners, with fuel cell leaders Plug Power ( NASDAQ:PLUG ) and Bloom Energy ( NYSE:BE ) gaining 8.6% and 6%, respectively. Also moving higher is solar panel microinverter maker Enphase Energy ( NASDAQ:ENPH ) , scoring a 5.1% gain as of 10:10 a.m. ET. Image source: Getty Images. So what And yet, most of the news in renewable energy today is bad news. This morning, you can't throw a rock on Wall Street without hitting one banker or another that is cutting price targets on renewable energy stocks. On Enphase for example, megabanker J.P. Morgan just slashed its price target on the solar leader by 15%, to $246 per share, citing "challenging supply chain issues, geopolitical tensions, and an [unchanged] U.S. Investment Tax Credit over 2021 and 2022 … [Read more...] about Why Plug Power, Bloom Energy, and Enphase Stocks Popped Today