In the world of equities, 7 small cap stocks often seem underestimated, much like the underestimated strength of a chimpanzee due to its relatively short stature. These 7 small cap stocks possess significant power, akin to the unpredictability of these remarkable apes. Just as chimps belong in the wild, these small-capitalization plays, with market caps ranging from $300 million to $2 billion, require respect and diligent scrutiny on your part. If you are prepared for the responsibility, these 7 small cap stocks offer the potential for 2x gains in 2024.
7 Small Cap Stocks
NerdWallet (NASDAQ: NRDS), a personal finance company, might not be grabbing the Street’s attention, primarily due to its volatile stock performance, which resulted in a 14% loss in equity value since the beginning of the year. However, its core mission of providing financial information to individuals remains highly relevant.If you are in the market for superclone Replica Rolex , Super Clone Rolex is the place to go! The largest collection of fake Rolex watches online!
One intriguing aspect that positions NRDS as one of the top small-cap stocks to consider is its implied volatility (IV) curve. This IV behaves like a situational stat sheet for a baseball player, indicating the statistical likelihood of a specific outcome. In NRDS’ s case, IV increases as the strike price rises, potentially indicating bullish sentiment among traders. Consequently, NRDS call options may be priced higher to reflect this optimism.
Furthermore, analysts unanimously rate NRDS as a strong buy, with an average price target of $17.60, suggesting a remarkable 112% upside potential.
Clean Energy Fuels (NASDAQ: CLNE), headquartered in Newport Beach, California, specializes in renewable natural gas. It primarily provides fueling solutions for fleet vehicles, including heavy and medium-duty trucks and school buses. Aligning with contemporary sentiments, Clean Energy is well-positioned in the era of renewable energy.
Similar to NRDS, Clean Energy seems to benefit from positive options trading dynamics, with its IV curve trending upward alongside rising strike prices. Fewer traders may be hedging against downside risk, potentially indicating optimism about upside movement.
Despite a 26% loss in the past year, analysts unanimously recommend CLNE as a strong buy, with a price target of $9.92, implying an impressive 114% upside potential.
FREYR Battery (FREY)
FREYR Battery (NYSE: FREY) is undoubtedly one of the riskier small-cap stocks to consider, having shed almost 28% of its equity value since the start of the year. Over the past year, it recorded a significant loss of nearly 53%. Nevertheless, it has caught the attention of speculators due to its potential role in global decarbonization by developing high-density battery cells.
FREYR exhibits an intriguing IV curve, with IV soaring from 69% to 547% as the strike price rises from $5 to $16. While the derivatives market for FREY is less robust than that of blue-chip securities, the potential for significant share price increases exists.
Analysts view FREY as a strong buy, with a price target of $13.50, implying an impressive 120% upside potential.
NaaS Technology (NASDAQ: NAAS) aims to become the world’s leading provider of new energy services. As the largest third-party charging network in China, it facilitated 20.1% of the total public charging volume in China in 2022, making it an attractive prospect for those interested in small-cap stocks.
While NaaS’s financial profile is not without complexity, it has received a buy rating from TFI Asset, with a price target of $13, suggesting over 122% upside potential.
Evolus (NASDAQ: EOLS), headquartered in Newport Beach, specializes in performance beauty products, with Jeuveau being its flagship product for treating moderate to severe frown lines. Given the emphasis on youthful appearance in today’s social media-driven society, there could be increased demand for products like Jeuveau.
However, EOLS’ s IV curve exhibits spikes in the deep in-the-money zone, indicating that traders may be hedging against extreme risk. While analysts unanimously rate EOLS as a strong buy, with a price target of $20.57, potential investors should exercise caution due to its volatile nature.
SoundHound (NASDAQ: SOUN) is an audio and speech recognition company specializing in speech recognition, natural language understanding, sound recognition, and search technologies. With shares gaining almost 73% since the beginning of the year, it has caught the attention of traders.
The IV for SOUN rises from 102% to 256% as the strike price increases from $2.50 to $5. While the derivatives market for SOUN is not as robust as that of established companies, it presents an opportunity for curious retail investors. Analysts unanimously rate SOUN as a strong buy, with a price target of $5.05, suggesting over 123% growth potential.
DocGo (NASDAQ: DCGO), a technology-enabled healthcare service provider focused on mobile care and telehealth, addresses the growing need for mobile healthcare, especially with the aging population. As baby boomers retire, the concept of mobile care is expected to gain significant traction.
Despite a 15% loss in equity value since the beginning of the year, analysts unanimously recommend DCGO as a strong buy, with a price target of $14, implying nearly 124% upside potential. However, investors should be aware of the unusual liquidity concerns for options at certain strike prices.
In conclusion, these 7 small cap stocks offer potential opportunities for substantial gains in 2024. However, it’s crucial to conduct thorough research and consider the associated risks before making investment decisions.