Investing in small-cap growth stocks can be an exhilarating experience. These companies, typically with a market capitalization under $2 billion, often represent disruptive innovators or niche players in high-growth industries.
Identifying these hidden gems before they become household names is key to turning a modest investment into a fortune. This potential for explosive growth undoubtedly comes at a higher risk, as these companies may be unprofitable or be up against significant competition. However, for those willing to accept the risk, the rewards can be substantial for early investors.
For investors looking to capitalize on these opportunities, it’s crucial to conduct thorough research and due diligence. Additionally, you should aim to have a diversified portfolio and never risk more than you can afford to potentially lose.
Now, here are the top three small-cap growth stocks to buy in 2024!
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) takes the cake among the top small-cap growth stocks to buy. As demand for advanced semiconductor chips remains high in 2024, ACM Research is well-positioned to capitalize on this wave.
The company is a leading wafer packaging and semiconductor cleaning company. Its technology primarily focuses on enhancing the performance and reliability of semiconductor wafers. The company’s proprietary Space Alternated Phase Shift (SAPS) technology uses advanced megasonic waves to effectively clean semiconductor wafers. Adoption for its semiconductor packaging services continues to accelerate, boosting its top and bottom line growth.
In FY23, the company saw record revenue of $558 million, with earnings per share nearly doubling to $1.16 per share. Moreover, the ongoing recovery in the wafer fabrication market is a positive sign to build on momentum. In the first quarter of 2024, revenue skyrocketed 105% year-over-year (YOY) to $152.2 million. Additionally, earnings per share ballooned 136% YOY to 26 cents per share. With strong revenue guidance, a broadening product portfolio, and record shipments in Q1, ACMR stock could deliver outsized returns through 2030.
Payoneer (PAYO)
Payoneer (NASDAQ:PAYO), a global payments platform, has emerged as an indefensible player in the fintech space. With a market capitalization of approximately $2 billion, Payoneer’s growing revenue and earnings make it an attractive option for risk-tolerant investors.
The company’s true strength lies in its expertise in facilitating cross-border transactions for small and medium-sized businesses. With the global economy going digital, the need for different payment options is paramount. Its platform addresses these needs by offering a range of services, including multi-currency accounts, working capital and payment processing. Furthermore, the company’s growing earnings, gross margins and cash flows are positive signs for the future.
After achieving its first full year of GAAP profitability in FY23, Payoneer’s earnings continue to accelerate. In Q1 FY24, revenue increased 19% YOY to $228.2 million. Additionally, net earnings catapulted 265% YOY, with B2B payment volume up 33% from the year prior. The stock is still down significantly from its IPO despite the company’s clear progress. That places PAYO stock among the best small-cap growth stocks to buy and hold for the long term.
Fortuna Mining (FSM)
Fortuna Mining (NYSE:FSM) is a prominent player in the mining sector, focused on the exploration and production of precious metals like silver and gold. With investors concerned about de-dollarization, inflation and global debt, Fortuna is a leading candidate among small-cap growth stocks to buy in 2024.
The company, formerly Fortuna Silver Mines, is gaining investor appeal in 2024 as gold and silver prices rise rapidly. Founded nearly two decades ago, the company enjoys a diversified portfolio of mining assets. That includes mines in Mexico, Argentina, Peru, Burkina Faso, Côte d’Ivoire and Senegal. Over the last year, Fortuna has expanded its production capacity and explored new mining opportunities.
One example is its recent findings just last month of high-grade gold deposits at its Seguela mine in Côte d’Ivoire. Moreover, it reduced its leverage by paying down long-term debt to strengthen its liquidity. These are all positive backdrops as the company is positioned to drive profitable growth from higher gold and silver prices in 2024.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.