Small-cap stocks have gained substantial attention in recent months, a welcome shift for investors seeking opportunities beyond large-caps. While small-caps often exhibit increased volatility, they also hold the potential to deliver significant long-term gains, especially with less analyst coverage allowing for early investment.
Exploring the Candidates
For investors looking to venture into the small-cap arena, three potential stocks stand out: BrainsWay (BWAY), GigaCloud Technology (GCT), and American Public Education (APEI). All three have demonstrated positive price movements and benefited from optimistic earnings estimate revisions.
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GigaCloud Technology (GCT)
GigaCloud Technology Inc. specializes in global end-to-end B2B e-commerce solutions for large parcel merchandise, offering an integrated platform for streamlined transactions. Analysts have raised their earnings expectations, resulting in a Zacks Rank #1 (Strong Buy) for the stock.
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The company’s recent quarterly results surpassed estimates, driving a significant surge in stock prices. GCT achieved record profitability for the third consecutive quarter and demonstrated remarkable revenue growth, as observed in the chart below.
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Furthermore, GCT’s growth prospects remain promising, with consensus estimates projecting substantial earnings and revenue increments for the current and upcoming fiscal years.
BrainsWay (BWAY)
BrainsWay focuses on non-invasive neuromodulation products using Deep Transcranial Magnetic Stimulation (TMS) technology for treating major depressive disorder and obsessive-compulsive disorder. With analysts raising their expectations, the stock currently holds a Zacks Rank #1 (Strong Buy).
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Similar to GCT, BrainsWay’s robust quarterly results have propelled its stock and reinforced a bullish trend. The company experienced exceptional revenue growth, with positive forecasts for its upcoming financial performance.
The green arrows in the chart below signify the quarterly releases.
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American Public Education (APEI)
American Public Education offers online higher education tailored to the military and public service communities. With a Zacks Rank #1 (Strong Buy), the company has witnessed an uptrend in analysts’ expectations.
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APEI shares recently demonstrated a ‘Golden Cross’ – a bullish indicator where the shorter-term moving average surpasses the longer-term moving average. The company’s earnings estimates for the current and next fiscal years suggest significant growth rates.
The Potential
Small-cap stocks may pose higher volatility, but their growth prospects remain remarkably enticing. Despite potential price fluctuations, investors are drawn to the impressive growth trajectories and improved earnings outlooks of BrainsWay (BWAY), GigaCloud Technology (GCT), and American Public Education (APEI).
As the small-cap space continues to capture attention, these promising stocks offer investors a window into a world of potential gains and success.
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