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Small-Cap Stocks That Could Payoff Big

Hassan Maishera - December 03, 2019

small-cap stocks

Small-cap stocks have market caps below $2 billion. However, stock prices fluctuate, so market caps change too.

The market opened the week to losses, and the major indices fell in the extended-hours session on Tuesday as well. However, the small-cap stocks dip could be a buying opportunity for smart investors.

Don’t confuse small-cap stocks with cheap stocks. There’s no direct relationship between share prices and scale. GE is a massive company and its shares trade for under $10, same thing with Ford.

If you’re looking for affordable stock picks, be sure to check out our best penny stocks list. You can find the complete lineup for December here.

Small-cap stocks with Huge Payout Potential

Although small-cap stocks have grown at a slower annual rate than large-cap stocks over the past three years, they are promising assets. Here are five small-cap stocks with enormous payoff potential.

Signet Jewelers Ltd. (SIG)

Signet Jewelers is one of the largest retailers of diamond jewelry in the world. The company has a market cap of over $800 million, with a dividend of 8.66%. Signet’s stock has underperformed so far this year, down by 94% since January.

small cap stocks jewelry stocks zales
Signet Jewelers – the parent company of Zales Jewelers and other retail diamond sellers – is hoping for a strong holiday season this year.

The company could improve its online presence as e-commerce sales rose by 4.4% in the quarter that ended August 31. Meanwhile, store sales dropped by 1.5% during that period. It will report its next quarterly earnings on December 5.

According to Zacks Investment Research, the analyst’s consensus EPS for the quarter would be $-1.11. This performance is worst than in the same quarter last year.

Cannae Holdings Inc. (CNNE)

Cannae Holdings Inc. is one of the leading small-cap companies. The company has subsidiaries in several industries, such as restaurants, health care, and financial services sectors. Cannae’s stock is up by 117% so far this year and has the potential to move even higher in the coming weeks.

On November 13, Cannae reported its third-quarter 2019 earnings. The total book value portfolio for the company stood at $1.2 billion or $16.81 per share. Similarly, the company launched a three-year repurchase plan where it aims to buy back all the 5 million common shares of the company.

The recent appointment of Richard N. Massey as Chief Executive Officer is expected to shake things up at the company. Mr. Massey will bring over three decades of top managerial experience to Cannae.

Arcosa Inc. (ACA)

The infrastructural development company, Arcosa Inc., is another small-cap stock that could gain significantly overtime. So far this year, Arcosa’s stock has delivered a gain of 39% to investors. However, it has the potential to surge further over the next few months.

small cap stocks, infrastructure stocks, arcosa
Arcosa shares could rally if congressional lawmakers can agree to an infrastructure spending package, and both sides of the aisle have expressed interest in such a bill.

According to Zacks Investment Research, I. Ziffano, an analyst at Oppenheimer, believes Arcosa’s Q3 EPS could be $0.67. This is an upgrade from the previous $0.45 EPS predicted by the analyst. Analysts rate the stock as a ‘BUY,’ with a short-term price target of $47 per share.

More Small-Cap Stocks That Could Payoff Big

Some small-cap stocks could one day be big winners. Subscribe to the Dork and keep track of the small caps that could yield massive payoff. You can also follow Stock Dork on Twitter and Facebook to track of all the current stock market news, and don’t forget to sign up for mobile Dork Alerts to get all the hottest stock picks, insights, and analysis delivered to your cell.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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