Small-cap stocks have the opportunity to become large-cap ones as their businesses grow over time. In addition, since they usually have fewer people following them than their larger brethren, the shares of smaller companies are more likely to be mispriced by the market. That gives investors in small-cap companies the chance to see outsized returns if they’re invested in companies with either room to grow or room to see their shares bounce to full value.
Of course, finding the successful ones is much easier said than done, and as with any investing, there are no guarantees. That argues for small-cap investors to take a portfolio approach, spreading their risk across multiple such companies in the hope that enough succeed to make up for the losses in the ones that don’t. With that in mind, here are 10 small-cap stocks that could take off in 2020.
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