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3 Top Small-Cap Stocks to Buy in November

By Rick Munarriz - Nov 7, 2018 at 9:15AM

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Fitbit is already one of this month's hottest stocks, but let's check out two other companies that may join it in this month's victory lap.

They say it's the little things that count, and that's certainly the case in the world of small-cap stocks. There's a wide universe of investments trading with market caps between $300 million and $2 billion. They may be riskier than mid-cap or large-cap stocks, but the same can probably also be said about the potential rewards.

Fitbit (FIT)Upwork (UPWK -7.73%), and The Meet Group (MEET) are promising stocks with potential catalysts to lift them even higher. Let's take a closer look at these three companies that are poised to make some noise this month.  

A couple wearing Fitbit Charge bracelets in a kitchen.

Image source: Fitbit.

Fitbit 

The wearable-fitness pioneer is already one of this month's biggest winners, up a whopping 32% through just the first four trading days of November. The initial pop was the handiwork of a blowout quarterly report. Fitbit surprised analysts last week by posting top-line growth. The 0.3% revenue increase may not seem like much, but it breaks a nasty streak of seven straight quarters of year-over-year declines. Fitbit also managed to surpass bottom-line expectations with a profit on an adjusted basis.

Fitbit's success lately has come more from its new smartwatches than its flagship activity-tracking bracelets, but as we head into the telltale holiday shopping season, it's likely to make a big push for deeper market penetration. Fitbit's been falling out of favor since shortly after its 2015 IPO, but it's finally on track to give investors their first year of an appreciating stock price. Momentum is in its corner now, and it could linger. 

Upwork

We're in the golden age of freelancing, and Upwork is leading the way. The leading online marketplace for freelancers is rolling. It has matched skilled freelancers with companies that need them to account for $1.56 billion of jobs over the past year. Revenue is accelerating, up 28% so far this year after a 23% advance last year.

Companies are making the most of the ability to hire specialized talent without having to take on the costs of outright hiring them, and Upwork's future is bright. Upwork went public at $15 last month, and it will deliver its first quarterly result as a public company shortly after today's market close. The old adage about not getting a second chance to make a first impression fits perfectly with companies when they step up with their first earnings call.

The Meet Group

Another small cap that reports fresh financials this afternoon is The Meet Group. The social discovery and dating app developer has been on a roll. It has acquired international apps to help broaden its horizons, and now it has a hot live-streaming platform gaining traction.

There are now 900,000 users a day checking out the platform, and The Meet Group now sees it contributing $48 million on an annualized basis. That's not too shabby for a company that rang up just $123.8 million in revenue last year. The live-streaming app's success finds The Meet Group updating its projections for the better, and if we see more of the same in Wednesday afternoon's report, it should provide a boost to the shares. 

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Stocks Mentioned

The Meet Group, Inc. Stock Quote
The Meet Group, Inc.
MEET
Fitbit, Inc. Stock Quote
Fitbit, Inc.
FIT
Upwork Inc. Stock Quote
Upwork Inc.
UPWK
$20.53 (-7.73%) $-1.72

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