Top 10 stocks to invest in 2022 for short term
Finding the best stock with tremendous upside potential is one of the hardest things to do, but we have got you covered. We will be sharing the best small company stocks with you that you can invest in for short term
What are small company stocks?
Small-company stocks are the company’s shares with a total market capitalization in the range of around $300 million to $2 billion. These companies have the potential for high growth rates, making them attractive and exciting investments for investors’ minds.
Should we buy small companies’ stocks?
The main reason to buy these stocks is their potential for high growth rates. They are a bit risky that investors need to understand. The reason we should believe in small-company stocks is that once Amazon (NYSE: AMZN) was just only a $7 stock in 1998 and one of the biggest names in the market right now, Tesla (NYSE: TSLA) had a market valuation of only $1billion in the year 2010.
Some reasons to invest in small-cap stock
There are many reasons you should consider investing in small-cap stocks, and some of them are described below.
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.
As you already know, small-cap stocks have a very higher 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
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. This return rule can also be applied to long short-term investments.
Ten best small company stocks
We are sharing the best stocks with tremendous upside potential and in which you can invest in for the short term to get the maximum benefit. These stocks have low risk.
CymaBay Therapeutics(NYSE: CBAY)
It is a clinical-stage biopharmaceutical company. This company’s main objective is to develop therapies to treat metabolic diseases. The company has a market cap of around $233.37 million. Its product pipeline includes Seladelpar, MBX-2982, CB-0406, and CB-001.
The company’s stocks exploded over 105% in November 2021 when it revealed a positive update for its seladelpar liver disease drug, which has been on clinical hold since November.
The company stock is now trading at $3.46 right now. The expected stock price from the analyst side is to reach $10.13 in the next twelve months, which suggests the possible upside of 168.6% from the current stock price. If you are interested in buying a small stock, then this is the right one for you because it will provide you with guaranteed profit in the future.
CES Energy Solutions(NYSE: CESDF)
The company provides diversified commercial services. The company offers transportation, waste and water management, and chemical production. The company was formerly known as Canadian Energy Services & Technology Corp. It was incorporated in 1986, and the headquarters is in Canada. The company is now trading at $1.16And expected to be a rise in the coming months
The trading price expected to be in the few months is $3.07, which is an increase of about 90.6%. Suppose you are looking for the best small stock. In that case, CSE energy solutions should be on the list because they will give you benefits.
Vodafone Group(NYSE: VOD)
The company provides telecommunication services in Europe and also internationally. The company offers mobile services that allow users to text and call excess data. Not only these, but the company also provides a lot of things like health solutions, automotive, and insurance services. The market cap is around $40.76 billion.
Today’s stock price is $15.28, but the price will be much higher in the coming years, according to the investors. From the forecast, in a few months, there will be an increase of about 11.7%, which will be $16.67
Energy Transfer(NYSE: ET)
The next big name on the list is this company. It provides digital market automation and analytic software. It has a market cap of around $26.18 billion right now. The stock price right now is $8.23.When all the other stocks suffered during the pandemic, energy transfer was the only one standing.
This stock has a high potential to grow in the future. From the analyst side, this stock is likely to increase by 59% in the next twelve months, which came up to be approximately $15.if you are looking for something with great potential, you should invest your money into this stock.
Iron Source(NYSE: IS)
It is a global software company. The company was founded in 2010—the company acts as a business platform for app developers and most telecom operators. The company stock is now operating at $7.74.Like all other stocks, it went through some up and down during the pandemic. But this stock is the best buy right now.
The company has a market cap of around $7.84 billion. There is a very positive sign for this stock from the investors, which shows that there might be an increase of approximately 68.1% in the next twelve months. If you are looking for some best stocks to invest in, the iron source is the one.
Topaz Energy(NYSE: TPZ)
Topaz was an Irish petroleum retail chain owned by the Canadian Couche-Tard Group. It was formed in 2005. The company is now trading the stocks at $17.85.The company has a market cap of around $114.93B.The company is also involved in natural gas processing activities, increasing the stock value. It was formerly known as Exshaw Oil Corp. and changed its name to Topaz Energy Corp.
If you want to buy and hold it, the stock will give you a lot of benefits in the future. It is the best buy for right now. In the next few months, there is a 64.4% increase expected at the stock price, and the stock price is expected to be $22.86 in 2022.
Nuvation bio(NYSE: NUVB)
It is the biotechnology business based in U.S.which is tackling one of the greatest unmet needs in oncology. Last year, the company went through some difficult times and is now trading at $8.48 in the stock market.
The company was formerly known as RePharmation Inc. and changed its name to Nuvation Bio Inc. in April 2019. Nuvation Bio Inc. the headquarters is in New york. The forecast shows that there might be an increase of 104.7% in the coming years which will be approximately $17.40 in the twelve-month, so it is the best buy right now.
The company designs, manufactures, and produces metal and synthetic implants for the global costume base. The company implants are used in various surgical procedures, including spine sports and trauma.
Surgalign is a recovery stock. Millions of people were out of their medical procedures during the pandemic, and the company went through some downs. However, there is still a belief that this stock will be a big bang shortly.
The stock was trading at approximately $4 when the pandemic started. Now, the stock is trading at about less than a dollar. Still, the stock has a high potential for the future to grow.
Snap one Holdings Crop. (NYSE: SNPO)
The company is one of the best small company stocks to invest in. The company provides intelligent living solutions and has a very high potential to beat its competitors in the coming year. The stock is now trading at $20.35.It had some downs during 2021 because of some supply chain issues. The company claims that supply chain issues will be solved in the year 2022
Analysts have a very positive comment for the coming year. The forecast shows that there will be an increase of +332.44% in the coming years.
Electra Meccanica Vehicles Corp(NYSE: SOLO)
It is a development stage company which manufactures and plans angle person electric vehicles. The company is providing clean energy, electric cars, and technology. Most people believe that the company’s vision for the single-seat vehicle will capture the imagination of the buyers.
As we can see, most companies are taking the step into making electric vehicles. Electra Meccanica Vehicles have taken one step further in the electric vehicle world. There is a belief that the stock price will increase shortly.
The company is now trading at about $2.23 and was trading at $1.23 when the pandemic started. The company believes that stock prices will increase up to 65% shortly. If you are thinking of buying this stock, you should buy it, and this stock has a very high potential for the future.
We have described the best small company stocks for you in which you can invest in this year for the short term. All these stocks have low risky and have huge potential. We recommend you do some research of your own while investing in any of the stocks described above to get the maximum out of it.