Small-cap stocks have the potential to positively affect the overall growth of an investor’s portfolio. This comes down to several factors.
First off, small-cap stocks have a tendency to perform better than the market at large during bullish periods due to investor confidence and risk tolerance. Secondly, these stocks conventionally signal investors feelings that a bearish market will soon experience an upswing. For those who keep their investments in small-cap stocks, the rewards can be substantial.
Naturally, the risk associated with small-cap stocks can work against investors, too. These stocks tend to shed a large percentage of gains when there is a market correction or bear market. This is in contrast to bigger cap stocks that aren’t affected as negatively. Thus, it’s important to find those small-cap stocks that lean into various market trends.
With this in mind, the remainder of this research report is going to bring your attention to three small-cap stocks which are in a great position going into 2023.
- Vivid Seats (NASDAQ:SEAT)
In 2022, the travel and entertainment industry has been one of the most resilient sectors of the economy, due to pent-up demand. This is why Vivid Seats, which is listed on the NASDAQ stock exchange under the ticker symbol “SEAT,” may be worth considering as an investment opportunity.
Vivid Seats is a company that operates in the “secondary market” for event tickets. This means that if you want to purchase tickets for concerts, sporting events, or other events and the tickets are sold out, you can visit Vivid Seats’ website or app and try to find tickets for the event. Vivid Seats allows consumers to purchase tickets for events that may be sold out or to find better seats than those available directly from the event venue. While consumers may end up paying more for tickets purchased through Vivid Seats, they may also be able to find discounts or lower prices than what is available through the venue directly.
Vivid Seats (SEAT) only began publicly trading its stock in late 2020, which means that there is not a long track record for investors to consider. However, the company has reported two profitable quarters and has shown consistent revenue growth. Analysts tracked by MarketBeat have given SEAT a bullish consensus price target of $13.05, which represents a potential increase of 67.95% from its price as of October 17, 2022.
Concerning Vivid Seats
Vivid Seats is a company that operates an online platform for buying and selling event tickets in the United States and Canada. It is divided into two main segments: Marketplace and Resale. The Marketplace segment acts as a middleman between ticket buyers and sellers, and processes ticket sales on its website and mobile apps through distribution partners. This segment sells tickets for live sports events, concerts, theater shows, and other live events. The Resale segment allows individuals and companies to sell tickets that they have already purchased, either directly through the Vivid Seats platform or through other channels.
- Maxar Technologies (NYSE:MAXR)
Maxar Technologies, which is listed on the New York Stock Exchange under the ticker symbol “MAXR,” is a company that provides geospatial intelligence to the U.S. government through its Earth Intelligence business unit. This intelligence is used for a variety of purposes, including national security and military protection. The company recently secured a three-year contract renewal with the U.S. National Geospatial-Intelligence Agency (NGA) worth $44 million.
In addition to its Earth Intelligence business unit, Maxar Technologies also has a Space Infrastructure unit, which provides space-based infrastructure products and services. The company has been operating for many years, and the growing interest in space travel could be a positive factor for its stock. According to Morgan Stanley, space tourism could potentially become a trillion-dollar industry by 2040. While some analysts have recently lowered their price targets for Maxar’s stock, it still has a consensus target of $40.27, which would represent a 99% increase from its current price.
Concerning Maxar Technologies
Maxar Technologies is a company that provides solutions related to earth intelligence and space infrastructure. It operates in various countries around the world, including the United States, South America, Europe, Asia, the Middle East, Australia, Canada, amongst others. The company is divided into two main segments: Earth Intelligence and Space Infrastructure. The Earth Intelligence segment provides earth imagery, geospatial data, and other related services to public sector and enterprise customers, as well as advanced geospatial information, applications, and analytics for national security and commercial solutions.
- Hudbay Minerals (NYSE:HBM)
Copper is expected to be an important metal in the transition to a clean energy economy. In particular, there is expected to be increased demand for copper in the production of electric vehicles and solar panels. Copper is used in the production of electric vehicles because it is an excellent conductor of electricity, and it is used in the production of solar panels because it is a critical component of photovoltaic cells.
Investors may be able to benefit from the expected increase in demand for copper. Currently, the stock price of copper mining companies, like Hudbay Minerals, is not reflecting this expected demand. In fact, the stock price of Hudbay Minerals has declined by 45% this year. However, analysts predict that the stock price of Hudbay Minerals could reach $9.83, which would represent a significant increase of 150% from its current price.
While there is some uncertainty about whether copper prices will recover as quickly as expected, investors in copper mining companies like Hudbay Minerals should not be overly concerned. Hudbay Minerals has a strong financial position, with a solid balance sheet that will allow the company to withstand economic challenges that may affect weaker companies.
Concerning Hudbay Minerals
Hudbay Minerals is a mining company that operates in North and South America. It is involved in the exploration, extraction, and sale of base and precious metals, including copper, gold, silver, molybdenum, and zinc.
If you are considering purchasing a penny stock, Hudbay Minerals could be a good option. This Canadian mining company extracts copper concentrates that may also contain valuable precious metals. It is listed on the New York Stock Exchange under the ticker symbol HBM.
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