Why These Small-Cap Stocks Are On Investors’ Radar?

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Why These Small-Cap Stocks Are On Investors’ Radar?

 Why These Small-Cap Stocks Are On Investors’ Radar?
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Summary

  • Pharmacy chain Rite Aid administered 2 million Covid doses between March and April.
  • Tech firm ACM Research Inc. logged revenue of US$45.56 million in FY 2020.
  • Small-cap firms are young companies with a market cap of US$300 million to US$2 billion.

Small-cap stocks are generally newly founded companies with a market capitalization of around US$300 million to US$2 billion.

Small-cap companies also attract investors companies because of their immense growth potential.

Such companies typically take time before registering higher returns as they undergo initial struggles in the market.

Let’s explore three small-cap companies here to understand what they do and how they have performed in recent months.

Source: Pixabay.

ACM Research Inc. (NASDAQ: ACMR)

ACMR is a California-based technology company and supplies cleaning technologies for semiconductor devices. It has a market capitalization of around US$1.4 billion.

The stock was trading at 0.33% down from the previous close at US$80.69 at 2:34 pm ET on June 8. Its value had reduced by around 13% YTD.

ACMR’s 2020 revenue rose to US$45.56 million from US$24.60 million in 2019.

Its income from operations stood at US$6.7 million against US$4.5 million in 2019.

ACMR expects to net total revenue of around US$205-230 million in 2021.

Also read: Three Midcap Stocks That May Gain From Recovery

Rite Aid Corp. (NYSE: RAD)

Rite Aid Corp. is a leading healthcare and pharmacy chain based in Pennsylvania. It has 2,500 pharmacy stores across 17 states. Rite administered around two million covid vaccine doses between March and April.

Rite had recently acquired the Washington-headquartered pharmacy chain Bartell Drugs to strengthen its market position. Its market capitalization is around US$1.03 billion.

The stock was priced at US$22.20 at 2:37 pm ET on June 8, up 5.71% from the previous closing price. The stock gained around 16% YTD.

In Q4 ended February 27, 2021, Rite’s net loss was US$18.5 million or US$0.34 per share.

In the same period last year, its net loss was US$343.5 million or US$6.43 per share.

Also Read: Shell & Exxon: 2 Energy Stocks To Watch In June


Core Laboratories N.V. (NYSE: CLB)

CLB is a Netherland-headquartered company and provides problem-solving tools to the oil industry. It helps companies to optimize production through a unique program called ROC.

The stock gained over 50% YTD. The stock was trading at US$47.65 at 2:39 pm ET on June 8, down 0.50% from the previous close.

CLB has a market cap of around US4$1.9 billion. In Q1 of 2021, it logged revenue of US$104.8 million, of which, US$11 million came from operations.

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