Despite market jitters, there is one group of stocks that continue to outperform. That’s small caps.
“A lot of the money coming into small caps is generated by trade jitters. It’s gotten to the point, where we can’t keep hoping trade will go away as an issue. This is part of the reality that’s coming out of Washington,” RBC strategist Lori Calvasina says. “Small caps right now are the safer risk trade.” Indeed, year-to-date the Russell 2000 small cap index is up 7%. This is versus the S&P 500 which is up only 1.67%.
So with this bullish analysis in mind, we turned to TipRanks’ powerful stock screener to source the 10 best small cap ideas out there. We specifically searched for Small Cap stocks with a ‘Strong Buy’ rating from top analysts, and big upside potential to boot. The screener has now been revamped to include price targets- enabling you to pinpoint stocks set to surge. Let’s take a closer look at how this works out in the results below. Here we cover the first five stocks, with the second set coming later in the week:
1. Health Insurance Innovations
As the name suggests, Health Insurance Innovations (Nasdaq:HIIQ) sells short-term medical plans. “We continue to believe that HIIQ is positioned to benefit from solid demand for alternative affordable insurance policies. With significant potential upside in the shares, our rating is Overweight” cheered Cantor Fitzgerald analyst Steven Halper (Profile & Recommendations) recently. This top 100 analyst has a $60 price target on HIIQ, indicating 85% upside potential from current levels.
Two big catalysts on the horizon: resolution of its multi-state review and President Trump’s executive order allowing for the sale of 364-day policies (compared to just 3 months). As we can see below, four analysts have published HIIQ Buy ratings in the last three months. This comes with a $52 average price target (62% upside).
