Investing in small-cap stocks can be a fantastic strategy for growth investors -- if you can pick the ones that grow into large-cap stocks. A small-cap is defined as having a market capitalization between $300 million and $2 billion, while a large-cap is defined as having a market capitalization over $10 billion.
With that in mind, Axos Financial (NYSE: AX), Telaria (NYSE: TLRA), and Yext (NYSE: YEXT) are three diverse small-cap stocks that I believe have big-cap potential.
Axos was formerly known as Bank of the Internet -- a nod to the company's branch-less banking business model. But the name change reflects an expanding focus. Rather than primarily servicing single-family mortgages as before, it now looks to provide a variety of banking services including auto loans, financial advice, and brokerage services.