Are These On Your List Of Small-Cap Stocks To Watch This Week?
When you are on the hunt for small-cap stocks to buy, what do you look for? Are you looking for chart trends or are you searching for companies that are starting out with good fundamentals? There are also investors looking for small-cap stocks that are trending in news and social media. From observation, it seems to me that the latter is more popular. Maybe this is because more millennials are joining the stock market.
We must also remember that small-cap stocks are high-risk, high-reward equities. However, it is also often sought after by investors looking for cheap shares. While price shouldn’t be the only reason for investing in small-caps, it definitely is an attractive feature. This is particularly attractive for investors who are just starting out. They may not have much cash but would still very much like to participate in the stock market. One thing investors should bear in mind is that small-cap stocks usually have little correlation to the performance of the S&P 500. Don’t get me wrong. That’s not to be confused with industry-specific correlation. For instance, large-cap biotech stocks and biotech small-cap stocks could still move in the same direction over momentum.
But for the most part, stocks under $5 tend to move on their own accord. So when it comes to investing in small-cap stocks, specifics of the company and potential catalysts for the stock are what investors pay attention to. With this in mind, here are 2 small-cap stocks making attempts at new highs in June.
Top Small-Cap Stocks To Watch: Organogenesis Holdings Inc.
First up the list, Organogenesis Holdings (ORGO Stock Report) is one of the top penny stocks to watch this week. Despite reporting a sharp increase in losses during the first quarter, Organogenesis had some good news to share. The leading regenerative medicine company reported a net revenue of $61.7 million for the first quarter of 2020. This was an increase of 8% compared to $57.1 million a year ago. Revenue grew substantially in both the wound care and surgical and sports medicine segments.
This potential of ORGO stock lies behind 5-star analyst Richard Newitter’s comments. In his report for Leerink, Newitter writes, “As a relatively new public company, we believe ORGO has yet to be fully “discovered” by investors with a below-peer valuation that in our view is highly dislocated from the company’s longer-term sales growth prospects, healthy end-markets, and a scalable long term 70%+ GM business. Ultimately, as investors increasingly come to appreciate ORGO’s potential for sustainable DD top-line growth & increased profitability prospects into the out-years, we think the multiple will expand driving shares higher.”
In line with his highly optimistic outlook, the analyst gave ORGO stock a Buy, and his $7 price target from current $3.34 implies a 112% upside potential.
Top Small-Cap Stocks To Watch: Usio, Inc
Usio Inc (USIO Stock Report) has been on a wild ride this year. At the start of 2020, shares traded around $1.75. Since then, the shares had slid to $0.85 in March before making a rebound to a high of $2.25 per share this week. The integrated payment solutions provider announced its fiscal results on May 15. It saw revenues increasing 18% to $7.8 million. Meanwhile, net loss narrowed to $0.06 per share compared to $0.09 for the same period last year. From the figures, we can see that the company is potentially on track to turn into profitability. And that’s a very positive sign from an investor’s standpoint.
USIO stock has gone up more than 150% in two months, making it one of the best small-cap stocks to trade in recent weeks. The Chief Executive of Usio, Louis Hoch commented “Had it not been for coronavirus, we believe this would have been a year of steady, quarter after quarter sequential improvement in our financial performance. As it is, we remain hopeful to still have a great year as we manage through the substantial levels of economic disruption created by coronavirus and continue to expand our presence in the rapidly expanding electronic transaction processing market.”
Analysts are giving a buy rating for USIO stock, with an average price target of $4.50. The shares of Usio are currently trading at $2.18. With so much positive sentiments surrounding this stock, could USIO stock be a penny stock to buy right now?