Which small-cap stocks look attractive currently? According to Wall Street analysts, the three stocks discussed below have earned a “Strong Buy” consensus rating and have the potential to appreciate more than 20% in the next twelve months.
To find these stocks, we leveraged the TipRanks’ Stock Screener tool and filtered small-cap stocks with Strong Buy ratings and attractive upside price potential. A small-cap stock is defined as the stock of a company with a market capitalization between $300 million and $2 billion. These stocks have the potential to outperform expectations when macroeconomic conditions are favorable. Small-cap stocks carry a higher risk-reward profile than large-cap stocks. Investors must conduct thorough research before deciding to invest in them.
Coursera (COUR) – Coursera operates an online learning platform, boasting 1 million registered learners. Coursera partners with educational institutions, universities, and industry partners to offer courses, specializations, professional certificates, guided projects, and bachelor’s and master’s degrees. On TipRanks, COUR stock has a Strong Buy consensus rating based on nine Buys and one Sell rating. Also, the average Coursera price target of $17 implies 110.4% upside potential from current levels. COUR shares have plunged 58.3% year to date.
Following Coursera’s better-than-expected Q2 FY24 results, several analysts reaffirmed their Buy ratings on the stock. Analysts remain optimistic about Coursera’s generative artificial intelligence catalog that is garnering millions of enrollments.
Dave & Buster’s Entertainment (PLAY) – Dave & Buster’s operates premier entertainment and dining experiences throughout North America. Its offerings include arcade games, bowling, virtual reality games, billiards, and more. PLAY stock commands a Strong Buy consensus rating on TipRanks backed by four Buys and one Hold rating. The average Dave & Buster’s price target of $60 implies 92.7% upside potential from current levels. Meanwhile, PLAY shares have lost 42.2% of their value so far this year.
In June, the company reported weaker-than-expected Q1 FY24 results due to higher labor and marketing costs. The entertainment player’s performance remains under pressure as macro headwinds continue to daunt consumer spending on discretionary items. Even so, analysts remain hopeful that in the long run, the easing of macro pressure coupled with the company’s marketing strategies will help boost its sales.
ACM Research (ACMR) – ACM Research is a semiconductor player that manufactures wet processing technology and products. It mainly focuses on cleaning technologies for advanced semiconductor devices. With six unanimous Buy recommendations on TipRanks, ACMR has a Strong Buy consensus rating. Also, the average ACM Research price target of $34 implies 91.2% upside potential from current levels. Shares have declined 9% so far this year.
ACMR reported solid beat-and-raise results for Q2 FY24. Analysts are encouraged by ACMR’s optimistic growth prospects and a 50% year-over-year increase in shipments expected in the second half of 2024.
To find more small-cap investment ideas like these, you can take a look at TipRanks’ Stock Screener tool.
