TALK - Mighty Mites: 3 Small-Cap Stocks Packing a Powerful Punch

2024-05-23 06:00:00 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

To be completely upfront, small-cap stocks to buy are risky. They’re the equivalent of plus-money bets or plus odds. Let me explain.

In the world of sports gambling, you have the option of either wagering on the favorite or the underdog. Favorites are that way for a reason. Still, underdogs can occasionally spark an upset. And these bets can yield exponentially large rewards. You just have to know when to place the bets and for whom.

That’s always going to be a tricky endeavor. However, if you’re willing to risk some capital for the potential of significant rewards, then check out these small-cap stocks to buy.

Talkspace (TALK)

Based in New York City, Talkspace (NASDAQ: TALK ) falls under the healthcare space. Specifically, the company operates in the health information services category. Per the public profile , Talkspace focuses on virtual behavioral healthcare. In other words, it provides psychotherapy and psychiatry services through its platform. Given the rising importance and push for mental health issues and assistance, TALK represents one of the most relevant small-cap stocks to buy.

Financially, the company is attempting to build a path to profitability. On a trailing-12-month ( TTM ) basis, Talkspace posted a net loss of $11.89 million. Revenue during the same period landed at $162.12 million. Interestingly, shares trade at 2.83X trailing-year sales. That’s a relative discount to the average print during the first quarter, which stood at 3.93X.

Looking to the end of fiscal 2024, covering experts anticipate a loss per share of a cent on sales of $189.73 million. That would be a substantial improvement over last year’s loss of 12 cents per share on sales of $150.04 million.

Opal Fuels (OPAL)

Based in White Plains, New York, Opal Fuels (NASDAQ: OPAL ) falls under the utilities space; specifically, the regulated gas category. Per its corporate profile , Opal with its subsidiaries engages in the production and distribution of renewable natural gas. The end product is aimed for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs and constructs hydrogen fueling stations.

To be sure, OPAL represents a volatile idea among small-cap stocks to buy. Since the beginning of the year, shares lost more than 8%. They’re also down 22% in the past 52 weeks. At the same time, OPAL could be a relative deal. Right now, the security trades at 0.48X trailing-year revenue. In Q3 2023, this metric stood at 0.98X.

For fiscal 2024, experts anticipate earnings per share to land at 24 cents. That’s disappointing compared to last year’s result of 69 cents. However, the spotlight is on sales, which may hit $350.16 million. If so, that would be up 36.7% over 2023’s tally of $256.11 million.

Adaptive Biotechnologies (ADPT)

Hailing from Seattle, Washington, Adaptive Biotechnologies (NASDAQ: ADPT ) is a commercial-stage biotechnology firm. Per its public profile , Adaptive is developing an immune medicine platform for the diagnosis and treatment of various diseases. Notably, the company offers an immune-sequencing platform that incorporates proprietary acumen to help decode the immune system. It has partnered with household enterprises to forward medical advancements, making ADPT an enticing play for small-cap stocks to buy.

Financially, the company is a work in progress. For example, it printed a net loss of $215.06 million on a TTM basis. During the same time, revenue landed at $174.5 million. Currently, shares trade at 2.9X trailing-year revenue. Relative to the metric seen in Q3 2023 (when ADPT traded at 4.12X sales), Adaptive could be a discounted idea.

To be sure, prospective speculators must exercise patience. For fiscal 2024, revenue may sit at $167.87 million, down 1.4% from last year’s haul of $170.28 million. However, by fiscal 2025, the top line could expand to $205.56 million, up 22.5% from 2024’s projected sales. Also, the blue-sky revenue target calls for $221 million.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
• Legendary Investor Predicts: “Forget A.I. THIS Technology Is the Future”

The post Mighty Mites: 3 Small-Cap Stocks Packing a Powerful Punch appeared first on InvestorPlace .