Despite the recent rebound in the stock market, most US stocks still suffered losses during the year. And small businesses are generally worse off than their large counterparts.
Concrete example: the S&P 500 index
SPX
The 500 largest national companies index is down about 9% from January 1, but the Russell 2000 index
RUT,
which excludes the 1,000 largest companies listed on the American markets. United States and it focuses on the next 2000, it’s a drop of 20%.
While it is true that small businesses tend to be more sensitive to economic downturns, that does not mean that all small stocks are falling and falling right now. These nine companies are doing remarkably well with profits of at least 30% so far this year, and in one case 260%.
They are not microcaps simply subject to changes in sentiment. These are all companies based in the United States. United States With an average daily volume of more than 400,000 shares and a market capitalization of between 400 million and 2 billion dollars. Biotechnology stocks in the development phase are excluded, given the highly volatile nature of this subsector.
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1-800-flowers
• Sector: discretionary consumption
• Profitabil ity to date: 60%
When you can’t host birthday parties in person or make brunch reservations on Mother’s Day, send a little love at 1-800-Flowers.com
FLWS
This is the default option.
Sales increased thanks to the coronavirus, but it also helped the action to start 2020 with signs of recovery after the certainly disappointing gains for most of 2019. After reaching a 52-week low close to $ 11 around Thanksgiving day, the stock had exceeded $ 14 for New Years, and since the worst fears of coronavirus in March, he went to the races.
ACM Research
• Sector: technology
• Profitability to date: 260%
ACM Research
ACMR
provides services that remove persistent particulate and chemical contaminants from newly manufactured microchips. This company is incredibly specialized, but it is obviously a crucial part of the technological supply chain.
This small, fast-growing cap is poised to post nearly 30% revenue growth in the year and an additional 30% in fiscal 2021 if forecasts are confirmed. Profits are expected to increase by more than 20% this year and 30% in 2021 on top of that.
Air Atlas
• Industrial sector
• Annual profitability: 44%
It may seem dangerous to consider this action in the midst of discussions about potential passenger airline bankruptcies. But Atlas Air Worldwide
AAWW,
It is unique for several reasons. The US military USA This is an important customer, as are private customers who want to avoid public theft. These industries are still quite solid. In addition, AAWW rents its aircraft for freight and “dry hire”, a rather attractive model in the midst of a strong demand for shipping associated with cheap jet fuel prices.
With earnings reviews hinting at solid margins for the rest of 2020 and a recent labor agreement with its pilots’ union, this small-cap decision could continue to fly high for the foreseeable future.
Celsius
• Sector: basic consumer products
• Profitability to date: 65%
Celsius Holdings, a high-growth “high performance beverage” company
CELH
He offers a range of calorie-free fitness drinks that he says will help speed up your metabolism and burn body fat. The attractiveness of this type of product is obvious, and although the business is not yet profitable, it expects growth of almost 50% of its turnover this year and of almost 30% during the year. 2021.
Momentum investors love this little flavor of consumer growth with a great story and many to back it up.
Consolidated communications
• Sector: telecommunications
• Annual profitability: 38%
Small Fry Telecommunications Consolidated Communications Holdings
CNSL
It has been widely rejected by Wall Street in recent years because it barely ran in the dark and boasted of a stagnant small business. However, its decline over several years changed rapidly, as its rather modest portfolio of around 800,000 Internet connections became very valuable in the era of the coronavirus.
Beyond the short-term increase in current customers using more bandwidth, the company has promoted nifty partnerships with small school districts to help attract the much-needed attention of new customers and investors.
The forecast is now relatively impressive at 26 cents per share in 2020, up from just 2 cents a year ago.
Glu Mobile
• Sector: technology
• Profitability to date: 60%
You or your children may have become loyal to Glu Mobile
GLUU
Customers in recent weeks, such as the quarantine of coronaviruses, have led many users to download time-consuming games to their phones. Glu titles include cooking games, fashion games, sports games and even licensed titles with stars like Kim Kardashian and famed chef Gordon Ramsay.
The stock already had a strong history of earnings surprises before this external trend increased the numbers, and if closed players end up with some of these stocks, the growth trend could also stay with the company.
Poke
• Sector: discretionary consumption
• Profitability to date: 150%
Yes, Overstock.com
OSTK
It has whipped investors in recent years. A few years ago, it presented itself as a blockchain company and saw its shares go from around $ 15 to over $ 60 in early 2018. Then, in part because of the antics of its founder and CEO controversial.
Now, the material growth of its core business of e-commerce is once again at the center of concerns and investors love what they see, but other fireworks could emerge as the company prepares a controversy “digital dividend»Preferred shares. So far, however, volatility has moved in the right direction for shareholders, so this small cap with a high octane rating is notable.
Petmed
• Sector: health
• Profitability to date: 40%
The designation of the “healthcare” industry can be a bit misleading here, like PetMed Express
PETS,
is for pet owners who want to order heartworm treatments, as well as everyday items like cat food, dog beds and those silly buggies to take insects without … you know, they really work.
This stock is at the intersection of some powerful trends, as the coronavirus fuels both ecommerce purchases and the pet need for pets. Add the fact that the expenses for pets are almost $ 100 billion a year in the United States, and it’s easy to see the appeal of this small, more specialized retailer.
Plain natural foods
Sector: consumer goods
Yield to date: 111%
One of the most recent breakdowns on this list, United Natural Foods
UNFI,
is a distributor of food products specializing in natural, organic and healthy products. Organic products represent only about 6% of food sales in the United States. United States Currently, but it’s good for about $ 50 billion and constantly increasing.
The short-term push for home food from restaurant closings has created a downwind for this small-cap stock. Add a massive gain in the first quarter and increase targeting this month, and stocks have gone from less than $ 11 in early May to more than $ 18 today.
Jeff Reeves writes about investing for MarketWatch. You don’t have any of the actions mentioned in this article.
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