10 Best Small-Cap Stocks to Buy Now

Unveiling Undervalued Gems

For investors seeking undervalued opportunities, small-cap stocks offer a wealth of potential. Morningstar analysts have carefully scrutinized the market to identify the most promising small-cap stocks that are currently trading below their intrinsic value.

One-Year Performance Leaders

Based on their one-year performance, the top seven small-cap stocks are presented in a convenient table. These stocks have demonstrated exceptional growth potential, outperforming their peers in a challenging market environment.

Growth Potential in a Challenging Market

Despite the recent market volatility, small-cap stocks have the potential to deliver impressive gains. Their ability to adapt quickly to changing conditions and exploit niche markets makes them attractive investments for those willing to embrace higher risk and volatility.

Unique Characteristics of Small-Cap Companies

Small-cap companies typically have market capitalizations between $250 million and $2 billion. They offer unique opportunities for investors due to their agility, growth potential, and often undervalued status. However, it is important to note that small-cap stocks also carry higher risk and volatility than larger-cap stocks.

ETF Options for Small-Cap Exposure

For investors seeking diversified exposure to small-cap stocks, exchange-traded funds (ETFs) offer a convenient solution. Our list of the best small-cap ETFs includes both actively and passively managed funds, providing options for various investment strategies.