Sep. 6 at 2:09 PM
$BLZE $FPS $TRT $BRUN
Small caps have lagged the broader market over the past few months, but I expect momentum to improve later this year, particularly after the midterm elections. Here are 7 small-cap stocks that I believe offer compelling growth and valuation, with at least 70% potential upside toward their 52-week highs and/or analysts’ average price targets.
1. FPS — Best overall growth/value combination. Revenue is expanding extremely rapidly, yet the stock has fallen more than 50% from its
$66 high. Consensus PT is
$59.90, and some analysts have targets as high as the low
$70S.
2. INIO — Best profitable AI-power play. TTM revenue is up 53%, with strong data-center/power demand. At
$20.77 versus a
$42.95 high and
$38.20 consensus target, I think this is one of the cleaner valuation resets.
3. TRT — Best micro-cap asymmetric opportunity. TTM revenue is up 64%, while the latest reported quarter delivered 124% growth. At
$10.51, it’s roughly half its
$21.38 high. The major drawback is the lack of meaningful analyst coverage, so there’s no reliable consensus PT.
4. MWH — Best earnings-backed value. This one is particularly interesting: TTM revenue +72%, forward P/E only about 13×, and consensus PT
$45.45 versus
$25.27 currently. That’s an unusual growth/multiple combination.
5. BRUN — Highest growth/highest speculative upside. TTM revenue is up more than 600%, analysts forecast another enormous revenue ramp, and the two recent
$45 targets imply +155%. But the losses and execution/dilution risks make it much more speculative than FPS/MWH/INIO.
6. VELO — Turnaround/multiple-expansion candidate. Q2 revenue grew 52%, gross margins improved substantially, and consensus PT is
$23.60. Returning to its
$31.75 high would mean roughly +174%, the largest high-retest upside of these seven.
7. BLZE — AI/cloud-storage rerating. At
$13.46 versus a
$23.99 high, there’s 78% recovery potential, while analysts average
$22.83. B2 growth and the CoreWeave relationship are the main catalysts, although overall corporate revenue growth is much slower than the names above.
