5 Small-Cap Stocks to Buy as Russell 2000 Catches Up to Broader Market Rally
Throughout the year, the media has predominantly focused on and highlighted large-cap stocks, especially those in the technology and artificial intelligence sectors, given their excellent YTD returns.
While this emphasis is logical due to their noteworthy performance, it's important not to overlook intriguing opportunities within small-cap stocks.
Small caps are defined by market capitalizations ranging from $300 million to $2 billion. Those exceeding $2 billion transition into mid-caps, and the largest among them become large caps.
Two prominent indexes in the small-cap space are:
Interestingly, the market is anticipating that S&P 600 index stocks will deliver superior results in 2024 compared to their S&P 500 counterparts, with a projected increase of +18% versus +11%.
So, let's explore 5 small-cap stocks that the market believes will experience substantial growth in 2024. To do so, we'll leverage the InvestingPro tool for relevant information and data.
InvestingPro is an exceptionally practical tool for identifying stocks with the most promising upside potential based on specific criteria.
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1. Avid Bioservices
Avid Bioservices (NASDAQ:CDMO) was formerly known as Peregrine Pharmaceuticals and changed its name to Avid Bioservices in January 2018.
It was established in 1981 and is headquartered in Tustin, California. It offers services such as drug substance manufacturing, packaging, analytical method development, etc.
On December 11, it will present its results.
The following chart shows key data about the company's financial health.
Source: InvestingPro
Its shares fall more than -50% this fiscal year and in the last month -11% because
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