Hello friends, in today’s article, we will talk in detail about the 7 Best Top small-cap stocks for July 2023 and which you can buy. Friends, before starting this article, I want to tell you one thing that As a whole, small-cap stocks have thus far in 2023 mostly lagged behind their larger counterparts. Just take a look at the Russell 2000 index, which is one of the most well-known collections of smaller companies. This index is created by tracking the next 1,000 largest public firms instead of the 1,000 largest, which are monitored by the Russell 1000 index. The smaller Russell 2000 has increased by approximately 12% so far this year, and the larger Russell 1000 has increased by about 19% since January.
Prometheus Biosciences Inc., TG Therapeutics Inc., and Aero Therapeutics Inc. are among the top small-capitalization stocks as of July 2023; all three have increased by more than 400% over the past 2 mo1nths, while the Russell 2000 Index, a comprehensive index of U.S. small-cap equities, is down by about 3%.
The top three small-cap companies in each of the three categories—value, growth, and momentum—are listed below. Data is current as of July 2.
Table of Contents
- 1 Top small-cap stocks Best Value Small-Cap Stocks
- 2 Fastest-Growing Top small-cap stocks
- 3 Things to Consider When Analyzing Top small-cap stocks
Top small-cap stocks Best Value Small-Cap Stocks
Over the previous 12 months, these small-cap stocks have had the lowest price-to-earnings (P/E) ratio. A low P/E ratio means that you are paying less for each dollar of profit created because dividends and share buybacks are two ways that profit can be allocated to shareholders.
|Best Value Small-Cap Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Vital Energy Inc. (VTLE)||43.45||0.8||0.9|
|Theravance Biopharma Inc. (TBPH)||11.09||0.6||1.0|
|SilverBow Resources Inc. (SBOW)||25.79||0.6||1.1|
- Vital Energy Inc.:
In all of Texas, it explores, buys, and develops oil and natural gas resources. The corporation reported first-quarter earnings on May 9; net income increased to $114 million from a net loss of $87 million in the corresponding quarter in 2022. The fact that Vital Energy reported a substantial derivatives loss of $326 million in the first quarter of 2022 is a key factor in the stock’s poor P/E ratio. In order to purchase their Delaware Basin assets through a third-party partnership, Vital Energy and Forge Energy II LLC, a private oil and gas exploration company, entered into an agreement in May. The $540 million cash-only deal will increase the Vital Energy Permian Basin leasehold by 198,000 net acres.
- Theravance Biopharma Inc.:This Cayman Islands-based biopharmaceutical business creates and produces respiratory drugs like Yupelri and Trelergy to treat COPD.
- SilverBow Resources Inc.: An oil and gas company focused on acquiring and exploring properties in Texas.
Fastest-Growing Top small-cap stocks
This is a biopharmaceutical company in These are the top small-cap stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.
|Fastest-Growing Small-Cap Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|CTI BioPharma Corp. (CTIC)||9.05||1.2||N/A (see company description)||951|
|Ellington Financial Inc. (EFC)||12.93||0.9||N/A (see company description)||911|
|Vertex Energy Inc. (VTNR)||6.29||0.5||N/A (see company description)||827|
CTI BioPharma Corp.: A pharmaceutical business that creates cancer treatments for blood-related diseases is CTI BioPharma Corp. Swedish Orphan Biovitrum AB (SOBI), a biotechnology business with headquarters in Sweden, declared the acquisition of CTI BioPharma on May 10. In an all-cash deal, SOBI will purchase CTI for $9.10 per share, or around $1.7 billion.
In response to this news, the share price of CTI increased by 85% to $8.93 from $4.82. Because CTI BioPharma recorded a loss per share in the most recent quarter, the firm doesn’t have an EPS growth number in the table above.
Vertex Energy Inc.: This business distributes and refines crude oil. Due to the company reporting a loss per share in the first quarter of 2022, Vertex Energy does not have an EPS growth statistic in the table above.
Ellington Financial Inc.: a business that looks after other financial assets as well as mortgage-backed securities (MBS). It was announced on May 30 that Ellington Financial would purchase the mortgage-related REIT Arlington Asset Investment Corp. (AAIC) through a merger agreement. The combined company’s market cap is anticipated to be around $1 billion.
Because Ellington Financial recorded a loss per share in the first quarter of 2022, the firm doesn’t have an EPS growth number in the table above.
Ameresco Inc. (AMRC)
Ameresco, a company that develops clean technology, may not have had the best year-to-date performance, but it has fantastic near-term momentum after nearly tripling from its 52-week lows this spring. AMRC designs and implements projects that lower the energy consumption of facilities like industrial parks or office buildings by installing solar arrays, upgrading HVAC systems, and consulting on electricity infrastructure. This service is in high demand from a variety of clients, including local and federal government organizations, healthcare providers, transportation providers, and commercial enterprises. In partnership with a Colorado electric cooperative on a battery energy storage project, it recently inked the largest contract in its business history; in part as a result of this news, shares are up roughly 30% in the last 30 days.
|Small-Cap Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Prometheus Biosciences Inc. (RXDX)||198.83||9.5||666|
|TG Therapeutics Inc. (TGTX)||26.56||4.0||548|
|Akero Therapeutics Inc. (AKRO)||46.73||2.6||475|
Prometheus Biosciences: This biotech business creates drugs to treat inflammatory bowel disease (IBD); PRA023, its lead medication, is slated for Stage 3 clinical trials. In December, the company’s share price more than tripled as a result of PRA023’s promising Phase 2 findings.
Merck (MRK) stated on April 16 that it would buy Prometheus for $200 per share, a 75% premium over the company’s share price of $114 at the time.
Things to Consider When Analyzing Top small-cap stocks
High Operating Margins: The operational margin of a business indicates how effectively it can turn a profit from its core operations before paying interest and taxes. It is a good idea to check for steadily rising operating margins when investing in small caps because this shows that a company is adept at converting revenues into profits.
If investors buy small-cap stocks early, before a company might go on to become the market leader, they have a big upside. Furthermore, because it costs a lot less money to change the share price of small-cap stocks with a market cap under $1 billion than it does for large corporations like Apple or Amazon, whose market caps exceed $1 trillion, doubling in value is considerably easier. Additionally, Wall Street analysts and institutional investors may pay attention to a small-cap firm that experiences quick growth, which can boost shareholder returns even more.