IIPR - 3 Top Small-Cap Stocks to Buy Right Now
The market's rise in recent weeks seems a bit disconnected from reality, given high unemployment, unknowns about the future of the COVID-19 pandemic, and the uncertainty of an upcoming election. Stock bargains are harder to find than they were a couple of months ago, but one place to look is among small-capitalization stocks, which were hit along with everything else, but, as a whole, have been slower to rebound than the rest of the market. The Russell 200 Index, which is weighted to the small-cap universe, is still down 9% for the year, while the S&P 500 is down only 1% in 2020 and is only 6% below its all-time high.
Three small-cap stocks that have great prospects for the long term are Sonos (NASDAQ: SONO), AeroVironment (NASDAQ: AVAV), and Innovative Industrial Properties (NYSE: IIPR). Shares of smaller companies are often volatile, but for investors willing to ride out the tug-of-war between greed and fear, these companies have strong growth businesses that should pay off for their investors over time, and are good buys now.
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