As the year draws to a close, investors are eyeing the Santa Claus Rally, where stock prices tend to rise during the last week of December and the first two trading days of January. In yesterday’s article, we briefly examined the yearly phenomenon and listed a few mega-caps in good position to enjoy this rally. Today, we want to highlight five small-caps with the potential to enjoy this year’s trend.
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Axcelis Technologies (ACLS)
Axcelis Technologies (ACLS), a player in the semiconductor equipment industry, has had a challenging year, but one that could be classified as a mixed bag. On the one hand, the company continued its impressive EPS beats but saw a decline in revenue. ACLS stock has already climbed 1.92% since yesterday, in what is a positive start to the yearly rally. With a market cap of approximately $2.34 billion, Axcelis is well-positioned to capitalize on the rising demand for high-performance chips. The question is: Can Axcelis continue to thrive in the competitive semiconductor market?
Celsius Holdings (CELH)
Celsius Holdings (CELH), known for its fitness drinks, has been taking advantage of the global health trend for healthier, functional beverages and food. With a market capitalization of approximately $6.43 billion, Celsius has captured a significant share of the energy drink market. The holiday season often boosts sales of fitness and wellness products, making Celsius a strong contender for the Santa Claus Rally. CELH stock has increased 2.28% since the market re-opened, riding on Santa’s good holiday vibes.
Corsair Gaming (CRSR)
Corsair Gaming (CRSR) specializes in high-performance gear and technology for gamers and content creators. The company has generated attention in the gaming industry. With a market cap of $671 million, Corsair offers a wide range of products, including gaming peripherals, components, and streaming equipment. The holiday season typically sees a surge in sales of gaming-related equipment, positioning Corsair to benefit from increased consumer spending. The company carries a hefty debt and has yet to become profitable, but this is the season to be jolly and optimistic about its fortunes.
Magnite (MGNI)
Magnite (MGNI) operates an independent omnichannel sell-side advertising platform, offering applications and services for digital advertising and monetization. With a market cap of $2.31 billion, Magnite is growing at a steady pace and is well-positioned to benefit from the surge in digital ad spending during the holiday season. MGNI stock has been up 1.55% since yesterday, with Magnite scoring a perfect 10 on Tipranks’ Smart Score going forward.
Revolve Group (RVLV)
Revolve Group (RVLV), an online fashion retailer targeting millennial and Generation Z consumers, has had an impressive year. The company offers a wide range of apparel, footwear, and home products. Its market cap of $2.39 billion, strong online presence, and ability to connect with fashion influencers make it a popular choice during the holiday shopping season. The key question: Can Revolve sustain its impressive performance and capitalize on the Santa Claus Rally?
