While it’s important to have a diverse portfolio where strong growth stocks exist, there is still plenty of opportunity in some of the small company stocks, even those from companies that you might not have heard of. Bargain stocks from promising up and coming companies could be the growth stocks of the future, so they should not be ignored when you are expanding your portfolio.
Growth stocks are sometimes referred to as the glamour stocks of the investment world. Traditionally strong performers like Apple, Boeing, Microsoft, and other companies, are often favored by long term investors because they offer stability and a long history of year-on-year growth.
Here are two low capitalization stocks that are worth a closer look.
Small Company, Inogen (NASDAQ: INGN)
Medical device company Inogen has gone from strength to strength in terms of total stock value this year. With revenue growth of over 22% throughout the last year, it’s clear that this company has the potential to become one of the most rewarding medical equipment stocks on the market. Stock value growth for the last 12 months is only a few points shy of 100%, and there are no signs of growth slowing in the near future. Analysts rate this stock a ‘BUY’ in May 2018, and it’s definitely the kind of stock where you will want to get in early rather than later. Chances are that this stock will continue to go up as inflation rises.
Solaris Oilfield Infrastructure (NYSE: SOI)
Solaris is an energy sector company that provides support to extraction operations performing hydraulic fracking. According to company reports, Solaris currently provides support services to 25% of the major fracking rigs in the United States. Internal sources state that figure could increase to almost half of all fracking companies by the end of the year. Stock in this company is currently priced at bargain rates, making it an excellent option for affordable long-term investment. Solaris stock value has increased 22% in the past 12 months.
A strong portfolio is one that spreads risk across different areas of the market. By diversifying with some carefully selected low capitalization stocks, you could have the potential to make strong gains when these companies grow in the coming years.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this article, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.
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