8 Best Micro Cap Stocks to Buy According to Analysts

2. Stoneridge, Inc. (NYSE:SRI)

Market Cap as Of October 29: $265.98 Million

Stock Upside Potential: 165.90%

Number of Hedge Fund Holders: 13

Stoneridge, Inc. (NYSE:SRI) designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets. While the company has lost significant market value year to date, management remains focused on improving the fundamentals, which should lead to significant margin improvements and outperformance relative to expectations.

Stoneridge, Inc. (NYSE:SRI) delivered solid second-quarter results driven by continued material cost reductions and improved operational excellence. Efforts to reduce material costs and control operating costs resulted in a 250 basis point improvement in gross margin and a 210 basis point improvement in adjusted operating margin over the first quarter. Gross profit in the quarter was up by 2.5% to $53.7 million, with operating income increasing by 2.1% to $5.4 million.

While focusing on operational performance improvement, Stoneridge, Inc. (NYSE:SRI) remains focused on the flawless execution of its program launches that should drive strong growth. The long-term outlook remains solid as the company ships its first MirrorEye OEM systems to Volvo to launch its FH Aero model in Europe. Additionally, according to analysts, it remains one of the best micro-cap stocks to buy, as its robust backlog continues to drive continued long-term growth.

Furthermore, Stoneridge, Inc. (NYSE:SRI) announced a strategic alliance with Volvo Bus to provide digital solutions and AI-powered connected services. Additionally, Stoneridge’s dedication to future expansion is demonstrated by its ongoing investments in cutting-edge software and AI capabilities.

Stoneridge, Inc. (NYSE:SRI) is currently rated as a Strong Buy on Wall Street with an average price target of $24.25, implying 165.90% upside potential.