A small-cap stock is defined as one with a market capitalization of less than $2 billion. Market capitalization, or the number of outstanding shares multiplied by the share price, is a measure of a company’s value. Small-cap stocks have outperformed large-caps in nine of the last ten recessions. Russell 2000’s market cap grew to $3.5 trillion, an increase of an astounding 84.2 percent, as compared to Russell 1000’s growth of 49.5 percent.
Insider Monkey selected the 10 best small-cap stocks to buy for 2022. This past year, Titan Machinery Inc.’s stock has increased in value by 21.91 percent. The company’s stores in the United States sell agricultural and construction equipment. On Titan, Steve Dyer, an analyst at Craig-Hallum, has maintained a ‘Buy’ rating. Origen Materials, Inc. is a carbon-negative materials manufacturer. It has figured out a way to turn biomass carbon into useful products like PET plastics derived from plants. Nestlé, PepsiCo, and Ford Motor Company are some of the companies with which the company has joint venture agreements. The next pick for the best small-cap stocks to buy in 2022 is BlueLinx Holdings Inc. The company’s improved balance sheet and modest valuation position it well to benefit from cyclical increases in new residential construction activity in the United States. Furniture manufacturer The Lovesac Company makes ‘sectionals,’ which are modular couches, out of foam beanbag chairs. Even in the midst of the pandemic, Hibbett, Inc. maintained a steady performance and is now doing exceptionally well in e-commerce sales as well. According to Baird, the company’s risk-to-reward ratio is “too compelling to ignore.” For more details, click 10 Best Small-Cap Stocks To Buy For 2022.