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Money Tree

Top 3 Small Cap Stocks!

rankings and lists Dec 30, 2020

 Good Morning Everyone! We hope everyone is enjoying their holiday season! Please stay safe out there!

Today's overview is going to cover our favorite 3 small cap stocks! The term small cap describes companies with a relatively small market capitalization. A company's market capitalization is the market value of its outstanding shares. The definition for small cap varies, but generally means a company with $300 million to $2 billion in market capitalization. What this means is these stocks are either younger companies, potentially more risky given their size and/or have large growth opportunities. While that was not necessarily a blanket statement, it is fair to assume that these stocks can often be somewhat more volatile in nature. Because of that, we want to caution all of our investors, and give a warning to proceed with caution. While we do like these stocks, we want to reiterate that they can be risky and are not for everyone! It is usually for the investor with a large risk tolerance and longer time horizon!And now without any further adieu, our favorite 3 small cap stocks! Please note these are in no order!

1) Sonos (SONO): Sonos is an American developer and manufacturer of wireless home audio products, including smart speakers. We've written about them before but they are one of our favorite small cap stocks and one of our top picks in the hardware sector! We think they may not be a small cap for much longer and will shortly become a mid-cap! We've been investors in this company for a long time! The risk here, with most likely lower upside, is less than the 2 stocks below!

2) Pandion Therapeutics (PAND): Pandion Therapeutics is a biotechnology company developing bi-specific antibody therapeutics to achieve localized immunomodulation at the site of disease for durable, tissue-specific treatment of patients with autoimmune and inflammatory disease and organ transplants. This is one of our top biotech small cap names! Please note these types of stocks are often very risky and extremely volatile. If it pans out though, their upside can be massive!

3) Fusion Pharmaceuticals Inc (FUSN): Fusion Pharmaceuticals Inc. operates as a biopharmaceutical company. The Company discovers and develops novel targeted alpha therapeutics (TAT) and radiopharmaceuticals for the diagnosis and treatment of chemotherapy resistant cancers. This stock, similar to the above, is also often very volatile! Again if their treatments pan out, there can be massive upside. However, please proceed with caution!