Before you invest in small-cap stocks, you should be comfortable with the risk that they present. By definition, a small-cap stock is one that has a market capitalization of less than $2 billion. But this leaves them prone to volatility. And when the market goes through a sell-off or correction these stocks can suffer steep losses.
Those concerns are being amplified as the Federal Reserve is pledging to raise interest rates as part of their efforts to implement a less accommodative monetary policy. And that means if your investment timeline ends in the next few years, you may want to look elsewhere.
However, if you have a longer time horizon, quality small-cap stocks have historically provided investors with an opportunity for high growth. In this special presentation, we're looking at seven small-cap stocks. Some have an interesting story that is playing out right now. Others have a narrative that should provide a catalyst for the stock once the economy is back on firm footing.
Here are seven small-cap stocks we believe deserve a closer look.
Click the "Continue to Slide #1" button to view the first company.