Small-cap stocks are usually considered to be stocks with market capitalizations somewhere between $250 million and $2.5 billion. They are the world’s potential up-and-coming companies.
Of course, most companies start out as small-caps, but by continually growing their earnings, their share prices appreciate. This can increase the market capitalization (share price times shares outstanding) of the company to large, or even mega-sized, while investors along for the ride reap the profits.
Big names like Microsoft, Apple and Amazon were all small-caps at one point. But not all small-caps flourish like those giants have. Many fail or stop growing, which means losses or little profit for investors. Great companies reveal themselves over time by continually producing quality earnings and sales growth.
To navigate the landscape of smaller, more speculative companies, Forbes Advisor has identified 10 of the best small-cap stocks that are growing earnings, are expected to keep doing so, are financially healthy and in some cases are trading at an extraordinary value.