As we head into 2023, small-cap stocks are expected to offer great opportunities for investors. Small-cap stocks are companies with a market capitalization of less than $2 billion. They have the potential for high growth, but they also come with a higher level of risk. In this article, we’ll take a look at the top 10 small-cap stocks to watch in 2023.
- Upstart Holdings, Inc. (UPST)
Upstart Holdings is a fintech company that uses artificial intelligence to improve the lending process. The company went public in December 2020 and has seen tremendous growth since then. Its stock price has more than tripled since its IPO, and analysts predict that it could continue to rise in the coming years.
- AppFolio, Inc. (APPF)
AppFolio is a cloud-based software company that provides solutions for property management and legal practices. The company’s stock has seen steady growth in recent years, and analysts predict that it could continue to perform well in 2023.
- Inari Medical, Inc. (NARI)
Inari Medical is a medical device company that specializes in treating vascular conditions. The company went public in May 2020 and has seen steady growth since then. Its innovative approach to medical devices has garnered attention from investors and could continue to be a top performer in 2023.
- Global X Lithium & Battery Tech ETF (LIT)
The Global X Lithium & Battery Tech ETF is not a small-cap stock in itself, but it invests in a number of small-cap companies that are involved in the lithium and battery technology industry. As electric vehicles become more popular, demand for lithium and battery technology is expected to grow. The LIT ETF could be a great way to invest in this growing industry.
- Teladoc Health, Inc. (TDOC)
Teladoc Health is a telemedicine company that allows patients to connect with doctors remotely. The COVID-19 pandemic has increased demand for telemedicine services, and Teladoc Health has seen tremendous growth as a result. The company is expected to continue performing well in 2023.
- EverQuote, Inc. (EVER)
EverQuote is a digital marketplace for insurance policies. The company uses artificial intelligence to match consumers with the best insurance policies for their needs. The insurance industry is ripe for disruption, and EverQuote could be at the forefront of that disruption.
- Lemonade, Inc. (LMND)
Lemonade is another insurtech company that uses artificial intelligence to provide insurance policies to consumers. The company went public in July 2020 and has seen tremendous growth since then. Its innovative approach to insurance has garnered attention from investors and could continue to be a top performer in 2023.
- Carvana Co. (CVNA)
Carvana is an online used car marketplace. The company allows consumers to buy and sell used cars online, cutting out the middleman and providing a seamless buying experience. The company has seen steady growth in recent years and could continue to perform well in 2023.
- The Trade Desk, Inc. (TTD)
The Trade Desk is a digital advertising platform that allows advertisers to target their ads to specific audiences. The company has seen tremendous growth in recent years and could continue to be a top performer in the advertising industry in 2023.
- Upwork Inc. (UPWK)
Upwork is a freelancing platform that connects businesses with freelancers for a variety of projects. The platform has seen tremendous growth in recent years, and as remote work becomes more popular, demand for freelancing services could continue to rise.
In conclusion, small-cap stocks offer a great opportunity for investors to invest in high-growth companies with significant potential. These 10 small-cap stocks provide a range of investment options across different industries, from fintech to insurtech, digital advertising, and more. While there is always a level of risk associated with small-cap stocks, these companies have demonstrated strong growth potential and innovative approaches to their respective industries. As with any investment, it’s important for investors to do their due diligence and consider their own financial goals and risk tolerance before investing in small-cap stocks. Nonetheless, these 10 small-cap stocks are certainly worth keeping an eye on as we move forward into 2023.
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