10 small cap stock to buy and hold in 2022
Finding the right stock to invest in is difficult, significantly when investing in small-cap stock, but we have got you covered. We will be discussing the best ten small-cap stocks you can buy and hold in 2022.
What is a small-cap stock?
Most people have no idea what a small-cap stock is a public company whose total market value or market capitalization is about $300 million to $2 billion. The company is smaller in size and has good growth potential. There is a risk involved in these companies that they will be victorious over time. The stocks of such a company are volatile.
Should we buy small-cap stock?
A question like this lay in every person’s mind when they came to know about small-cap stocks, and the answer is yes, we should because these stocks have high growth potential. They are also risky at the same time.
Still, the reason we should invest in a stock like this is that once upon a time, Amazon (NYSE: AMZN) was just only a $7 stock in 1998, and now it is one of the biggest names in the market not only these many other big names in the stock market were once a small-cap stock.
Some reasons to invest in small-cap stock
There are many reasons why you should invest in small-cap stocks. We will describe some of them to give you an idea of how beneficial it will be to invest in getting the maximum benefit.
Long term performance
Over time small-cap stocks tend to outperform large-cap stocks, and the percentage was about 2.3% annually. If you had invested $10,000, this could have resulted in an additional $5000.
So if you invest in a small-cap stock, you have an excellent chance to earn a higher return over the long term than the large-cap, and this return rule can also be applied to long short-term investment.
As you already know, small-cap stocks have a very high growth potential than large-cap stocks. For someone who is thinking of investing in a small-cap stock, there is a chance that you can get on the ground floor before a company explodes in size and its stock value skyrockets.
So there is a chance that you could collect a tidy profit later on if the company you invested your money in grows
Large Opportunity set
Small-cap stocks have very little analyst coverage as compared to large-cap stocks. We should turn some rocks over to find the most valuable stock among the thousands of companies in the small-cap universe, including several companies ranging from semiconductor capital equipment to aerospace.
10 Small-cap Stock
The company is the fifth-largest automotive retailer in the United States. The market cap of the company is around $2 billion. According to the analyst, the company stock is a good long-term investment. Sonic Automotive could be a good choice for some investors looking to invest.
The company stock performed very well during the pandemic, and the stock is trading at $51.66 right now; on March 11, the stock price was at $21.56.The company also has taken one step into the electric vehicle, which will make the stock price go up in the future.
Most analysts expect Sonic Automotive’s stock to reach $53.25 in the next twelve years, suggesting a possible upside of 6.5% from the stock’s current price. If you are thinking of buying this stock, this is the right time to do so.
Core laboratories.(NYSE: CLB)
It is an American company and is the provider of core and fluid analysis in the petroleum industry. The company also provides enhanced oil recovery techniques for the oil and gas industry. Its stocks are trading now at $25.67.This could be one of the best investments in the future.
The company went through ups and downs during the pandemic, but still, the stock price increased. When the covid-19 reached pandemic status, the stock traded at $10.
There is also a very positive sign from the investor’s side for this stock in the future.
If you are looking for the best small-cap one, you just found one. The company stock has a forecast upside of 29.8% from its current price in the next twelve months.
BioCryst Pharmaceuticals(NASDAQ: BCRX)
It is an American pharmaceutical company. The company is a biotech company that focuses on oral drugs for rare and severe diseases. It has two approved products for treating the flu and hereditary angioedema. The market cap is $2 billion, and the stock is currently trading at $13.47
The company went through some ups and downs during the pandemic, but there is still a good view from the analyst side that the stock price will increase next year. This stock is best to hold and then sell.
Heska Corporation(NYSE: HSKA)
The company develops and sells very advanced veterinary diagnostics and specialty health products. Heska Corporation is a Colorado-based firm. The company operates in the United States of America, Australia, Mexico, France, and many more. It was founded in 1988. The company stocks ranked in the first best small-company stocks last year.
It has a market cap of around $1.89 billion. The revenue generated by the company in the last year was $197 million, which was more than $122 million in the previous year. When most of the company stocks were facing some downside in the pandemic, Heska Corporation was the only one that grew during that time. Now the company stocks are trading at$161.1 in the stock market. If you are interested in buying small-company stocks, this stock is for you.
The company claims that there is still an area for its growth, and there will be an increase of 50% shortly. This stock is best to hold and then sell.
Winmark Corporation(NYSE: WINA)
It is an American company specializing in buying and selling used goods. The company is currently offering its services in America and Canada.This firm deals in music records, sports, and clothing. Winmark operates more than 1,200 stores right now.
Winmark Corporation has a market cap of around $726 and posted a revenue of $66 million in December. The company grew during the last year, and the stock is now trading $232.3 in the stock market.
If you are interested in buying the small-company stock, then this company is the one for you, and Winmark has a high potential to grow in the future.
National Western Life Group, Inc.(NYSE: NWLI)
The company is a taxes based stock life insurance company. The company is based in America. The firm operates in 49 United States and has more than 275 employees. Working right now. The company was founded in 1956
The company has a market cap of $896 million and posted more than $699 million last year. The stocks are now trading at $217.9 in the stock market and have enormous potential to grow shortly.
If you are looking for the best stock to buy, this is the one for you.
The company went through ups and downs in the pandemic and is now fully ready to grow.
Mesa Laboratories, Inc.(NYSE: MLAB)
It develops, acquires, and manufactures market-based electronic measurement instruments. The firm operates in the United States, Europe, and Canada. The company’s product includes infection control devices, data loggers, and much more.
It has a market cap of around $1.84 billion. Mesa Laboratories posted annual revenue of $117 million. The company has enormous potential to grow in the future, and its stocks are now trading at around $303.2 in the stock market right now.
If you are interested in buying small-company stock, this stock is the right one to invest in. The company grew very much in the last year.
GameStop Corp.(NYSE: GME)
It is an American company headquartered in Grapevine, Texas, one of the biggest video game retailers worldwide. The company is a consumer electronics, gaming merchandise retailer, and video game. This penny stock could be the best opportunity for someone thinking about investing in it.
The stock was trading at $4.14 when the pandemic started, and it grew so much during the pandemic that it is now trading at $181.12 in the stock market. The stock has a very high potential to grow in the future also, and there is also a big yes from the analyst side that we should invest in them.
Six analysts gave it a 4-star rating this month. The forecast says that the stock will hit $273.7 in 12 months.
Riot Blockchain(NYSE: RIOT)
The company is a bitcoin mining company supporting the blockchain through expanding industrial-scale mining. It is an American company which is based in the United States. This is another good stock to consider investing in right now. The company stocks are trading at $20.48 right now. It went through little ups and downs in the pandemic, but there is a huge possibility that the store will grow in the next twelve months.
Most analysts expect a positive upside of 59.5% from the stock’s current price, and the price is expected to be $47.25 in the next twelve months. Most people may think that should we consider investing in this stock, the answer is yes because there is a vast potential to grow.
Sundial Growers(NYSE: SNDL)
It is a pharmaceutical company, and the company grows and produces a range of cannabis strains and sells a variety of cannabis derivative products. It is an American company that serves customers in Canada. This penny stock is the best buy right now. The stock is currently trading at $0.58 right now. There are excellent reviews from the analyst side about this penny stock. The stock didn’t perform as well as expected in 2021 and went through ups and downs.
The company believes that its stock price will range from $4 to $10 in the next 12 months, and This suggests a possible upside of 296.2% from the stock’s current price. If you are interested in buying the best penny stock, then sundial growers are the right choice to go for right now.
These are the best small-cap stock companies that you should buy this year. All of them have a very high potential to grow. We recommend you do some research of your own to get more benefit.