In One Up on Wall Street, Peter Lynch tells us that the size of a company matters a lot when considering how much upside you can expect. He notes that "big companies don't have big stock moves" and advises that investors will "do better with smaller companies."
In order to find outstanding performers for our "10-Bagger Portfolio," we're hunting among some of the best small companies we can identify right now. Below are seven tremendous small-cap businesses that we're taking a particularly close look at right now. Here are brief summaries on why we like each of them:
2. Greenway Medical. Greenway Medical supplies management software to urgent care centers, which are popping up all over the place. The company looks like a nice way to play emerging health care trends. This one has a market cap under $500 million, so we're fine taking our time getting to know the business.
3. Nuance Communications
4. Jive Software. Nowadays, the business world is all about collaboration. Jive Software has actually created a technology platform using social communication tools to help workers collaborate -- and it's signing up customers at a rapid pace. Sure, the company's name is somewhat cloying, but this $1 billion company appears to have a very bright future.
6. Enphase Energy
One more for the road
Fool co-founder David Gardner has identified another company that has multibagger potential. At $1 billion in market cap, it has considerable upside. And it's also poised to benefit from long-term trends in the rapidly growing health care sector.
To learn more about this small-cap company that is disrupting its industry, have a look at our free report called "Discovering the Next Rule-Breaking Multibagger." This has been one of our most popular free reports to date -- and you can grab your copy right now by clicking here.