Three small-cap stocks to take note of

3 min read | February 08, 2021 12:30 AM PST | By Team Kalkine Media

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2020 was a rollercoaster ride for investors and market players alike. The broad-based S&P500 witnessed a rapid shift towards bearish sentiment. However, the index recouped in no time, on the back of tech stocks that went skyrocketing. However, amid the mending market, many investors started shifting their interest towards small cap companies with high growth potential.

Small-cap stocks have market caps between US$300 million and US$2 billion. These stocks offer a substantial scope if you tap into their hidden potential. 

On that note, let us explore these three small-cap stocks and see how they have performed recently.  

BJs Wholesale Club Holdings Inc (NYSE:BJ)

BJ’s Wholesale Club is a leading warehouse club operator headquartered in Westborough, Massachusetts. The company offers a considerable amount of savings to its consumers compared to its competitors. It has 221 clubs and 150 gas stations in 17 states. In November 2020, the company reported its financial results for the thirteen and thirty-nine weeks ended October 31, 2020. BJ’s said in the release that its third quarter was a remarkable period with strong growth. 

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It also witnessed market share gains and recorded profit during the period. The retail brand reported compatible club sales growing 18.5%, which included sales conducted through digital platforms. Regarding outlook, BJ’s is confident of thriving in the face of a changing environment where consumers are moving to online shopping. 

BJs Wholesale Club Holdings Inc (NYSE:BJ) share price last traded at US$43.00, an increase of 0.33%, as of February 12 at 4:00 PM EST. 

Nevro Corp. (NYSE:NVRO)

Nevro is a global medical device company based out of Redwood City, California. The company offers innovative, evidence-based healthcare solutions for chronic pains. In January 2020, Nevro announced unaudited financial results for the fourth quarter and full-year period ended December 31, 2020. 

For the fourth quarter, its global revenue is expected to be US$109.7 million, and the US revenue is pegged at US$94.6 million. The company noted trial procedures in the US were down about 8% during the Q4. Nevro’s full-year global revenue is expected to reach US$362.0 million, and the US revenue is expected to stand at US$311.9 million. 

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The medtech company continued serving its customers and patients in 2020, despite significant challenges because of the coronavirus pandemic. Especially in the second half of the Q4, the pandemic negatively affected its trial and permanent implant activities. Nevro’s management believes that it is well-positioned for 2021 and would deliver attractive growth. 

Nevro Corp. (NYSE:NVRO) share price last traded at 182.18, up 0.23% as of February 12 at 4:00 PM EST.

PDC Energy, Inc. (NASDAQ:PDCE)

This independent American exploration and production company is based out of Denver, Colorado. PDC Energy has its various activities in Colorado and West Texas operating sites producing oil and natural gas. In November 2020, the company reported its third quarter operating and financial results. The energy stock reported net cash from operating activities of about US$280 million. Oil and gas capital investments reached approximately US$35 million for the Q3.

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Management noted that despite the uncertain environment, PDC Energy remained focused and executed its activities. Furthermore, its free cash flow generation ability speaks volumes about the company’s robust operations. The company has also lowered its debt during the third quarter. 

PDC Energy, Inc. (NASDAQ:PDCE) share price last traded at 28.60, up 2.82% as of February 12 at 4:00 PM EST. 


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