Small Cap Stocks

ART, PLY, SKO: How have these ASX small cap shares performed YTD?

  • March 18, 2022 09:51 AM AEDT
  • Ashish
 ART, PLY, SKO: How have these ASX small cap shares performed YTD?

ks. Small cap stocks represent the firms with low market capitalisation (m-cap) but high growth potential. These stocks are popular among investors for their growth opportunities. Even as different stock exchanges have different rules to diff...

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5 small-cap stocks with high returns

5 small-cap stocks with high returns

Highlights  Small-cap companies have exposure to growth opportunities that could translate into high returns on the financial markets. Small caps are vulnerable to market downturns as they do not have resources similar to large-cap compani...

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Three ASX small-cap stocks with over 7% six-month returns

Three ASX small-cap stocks with over 7% six-month returns

  • November 23, 2021 09:41 AM AEDT
  • Ashish

Small-cap stocks are popular among investors as they have the potential to outperform mid- and large-cap stocks. Unlike large-caps, small-cap stocks always have a high potential to grow further, implying investors can expect better returns in the f...

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Two ASX-listed small-cap shares that have delivered decent YTD returns

Two ASX-listed small-cap shares that have delivered decent YTD returns

  • November 18, 2021 12:01 PM AEDT
  • Ashish

Investors are usually attracted to small-cap shares since they have a track record of outperforming the mid-cap and large-cap stocks. The companies with small market capitalisation have a higher potential to grow compared to large-cap firms. Howev...

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10 ASX Hydrogen stocks for the long-term

10 ASX Hydrogen stocks for the long-term

Many energy companies across the world are exploring opportunities to utilise hydrogen as a fuel to meet the burgeoning energy demand and the net-zero emission targets. As per the International Energy Agency (IEA), the world requires an investment ...

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Smallcap climate Stocks trading on ASX

Smallcap climate Stocks trading on ASX

Highlights  Apart from discussing COVID-19, countries worldwide are now focusing on clean energy and related infrastructure. The climate change topic has gained attention lately due to rising temperatures globally. Some companies from thi...

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Cardno’s (ASX:CDD) stock is trading stronger on ASX today. Here’s why

Cardno’s (ASX:CDD) stock is trading stronger on ASX today. Here’s why

Highlights Cardno has entered into a share sale agreement with Stantec Inc. The agreement includes the sale of Cardno’s Americas Consulting Division and Asia Pacific Consulting Division. The deal is worth around AU$667 million. ASX-...

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How ASX small cap stocks can impact your portfolio in 2022?

How ASX small cap stocks can impact your portfolio in 2022?

Since 2020, the world economy rode a rollercoaster ride, with most of the sectors and companies dwindling along. This has sharpened the focus of most investors and asset owners who look for stocks that are easy to acquire and offer long-term capita...

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7 small-cap stocks to explore ahead of Thanksgiving

7 small-cap stocks to explore ahead of Thanksgiving

Thanksgiving is around the corner, and it is not long before many would find themselves cherry-picking the gifts for their dear ones or deciding on the menu for their special dinner. But, while the festive season is about many things, from meeting ...

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Three ASX small-cap stocks that can be looked at this week

Three ASX small-cap stocks that can be looked at this week

  • October 19, 2021 10:22 AM AEDT
  • Ashish

Small caps are generally lapped up by investors since they always have the potential to outperform mid-cap and large-cap stocks. The companies with smaller capitalisation have a higher potential to grow compared to large-cap firms. However, small ...

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Looking for small-cap shares? Here are 2 ASX-listed stocks that can be looked at

Looking for small-cap shares? Here are 2 ASX-listed stocks that can be looked at

  • September 30, 2021 09:32 AM AEST
  • Ashish

Highlights Small-cap are historically known to outperform the mid-cap large-cap stocks. Small-cap companies have a higher potential to grow compared to large-cap firms. But these come with higher risks compared to large-cap and mid-cap stocks....

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Frequently Asked Questions

Investors tend to get attracted to small caps because of the ability of these small companies to deliver exponential growth in a relatively quick span of time. These companies are able to deliver high growth rate in earnings because of small base. However, these stocks also portray a heightened level of volatility, which makes them not a viable investment decision for beginners or for investors with low-risk appetite. The weightage of small caps in a portfolio should be curated based on individual investors’ investment goals, time horizon, capital adequacy and risk appetite. Stocks of these companies also witness low trading volume on exchanges as most of the astute and big investors tend to stick to big and well-established companies.

Investment in small caps is similar to investing in a new company. Many companies might not be able to make it to the big league and investors might face a long streak of losses. However, a few companies have the ability to turn out to be multi-baggers, which deliver a massive return, covering losses from other small caps by a wide margin. However, investors need to have a high-risk appetite, adequate capital to sustain losses and not to mention proficient knowledge, only then they might have a chance to make it big in penny stocks.

Analyzing a small-cap company is sometimes more difficult than doing the same for a large-cap company. The reason is the limited financial history of the company and often poor fundamentals, which make it difficult to estimate the future potential of the business. Fundamentals of a small cap can change very quickly and therefore, long-term projections are often more skeptical. Investors’ conviction and knowledge up to the industry level constitute a good part of investing in small caps. Also, investors should not get carried away by one-time windfall profits by the company as the sustainability of these profits is not proven and often is questionable.

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