To some investors, small-cap stocks are simply not worth the time and effort. While you may find that small-cap crypto gets a bad reputation, consider some of the advantages.
Growth potential, small-cap value index funds and the fact that large mutual funds don’t invest in them are three reasons why small-cap stocks are worth the investment.
While it does come with its fair share of risks, as all stocks do, it’s still something worth considering.
Because small-cap stocks come from lesser-known companies, it’s relatively uncommon for investors to consider investing in them. However, when the large-cap stocks experience fluctuations, it doesn’t necessarily mean that small-cap stocks will be impacted.
Crypto exchange-traded funds (ETFs) are growing in popularity, especially for those who are uninterested in crypto custody complexities.
However, when the large-cap stocks experience fluctuations, it doesn’t necessarily mean that small-cap stocks will be impacted.
We’ve rounded up some of the best small-cap stocks that are worth investing in in September.
1. A10 Networks (ATEN)
A10 Networks is a public company in the U.S. specializing in application delivery controllers and network security solutions.
Although it’s a small company, it looks and performs well. Some of its customers are Microsoft and Comcast. Because new technologies are emerging, the need for their products and solutions is increasing.
The growing role of cybersecurity for business will help justify your decision to invest in A10 Networks. Their recent performance in the market shows promise for the future.
2. Urban-gro (UGRO)
A player in the agricultural sector is urban-gro, Inc. It provides many solutions to the industry, such as water treatment systems, inventory monitoring, and pest management services for the cannabis growing industry.
With a market cap of $145 million, the company is still flying under the radar for most investors. Urban-gro uplisted this year and gained 155% in 2021, so it’s certainly worth investing in before the year ends.
3. Square Inc. (SQ)
Square Inc. is a financial service and digital payment company and was founded in 2009.
Square’s Relative Strength (RS) Rating recently took a jump from 78 to 82. Paypal is a strong competitor to Square, but it’s still considered small-cap as its market capitalization is around $117 billion.
It’s a valuable company that you may want to invest in, but be sure to monitor its performance in the coming weeks before deciding to invest.
4. California Resources Corp. (CRC)
Located in California, CRC is a company invested in hydrocarbon exploration. It produces crude oil, natural gas and natural gas liquids (NGLs) — the company has a heavy presence in the sustainability and green energy sectors.
Its market capitalization is at $2.5 billion and they’ve had high returns over the past 12 months. Consider monitoring its performance and investing, especially if you believe in sustainable technology and moving toward a green future.
5. Encore Wire Corp. (WIRE)
Encore Wire Corp. is a company that leads the industrial product sector in sales of copper, aluminum and residential, commercial and industrial building wire.
Founded in 1989 in Texas, it’s seen recent growth in the market.
Currently, Encore has a projected earnings growth rate of 332.6% for 2021 — so consider hopping on this opportunity soon. So far this year, the company’s shares have gained 45%, making it an attractive investment opportunity. Its accelerating growth is something to monitor this September.
6. Cassava Sciences, Inc (SAVA)
Cassava Sciences, Inc. is a biopharmaceutical company with a focus on neuroscience. The company develops potentially life-saving drugs that treat nervous system disorders, such as Alzheimer’s disease.
To some, it’s considered a “volatile, battleground stock,” but to others, it’s valuable and worth investing in.
Recently, the company is moving into Phase 3 of testing for its drug for Alzheimer’s, which could spark growth in the coming months.
All of these examples of small-cap stocks are worth looking into. Be sure to evaluate your risk when investing, as it’s always a best practice to do so.
September Stock Opportunities
As we enter the latter half of 2021, it’s critical that you diversify your investment portfolio and consider investing in small-cap stocks. While many investors will spend more time monitoring the performance of large-cap stocks and trending stocks, take a moment to consider the value of small-cap stocks and invest in some of the examples listed above.
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