8 Most Profitable Small-Cap Stocks To Invest In

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1. MYR Group Inc. (NASDAQ:MYRG)

Market Cap: $2.03 billion 

5-year Net Income Growth: 8.21%

TTM Net Income: $49.22 million

Number of Hedge Fund Holders as of Q2 2024: 27

MYR Group (NASDAQ:MYRG) is a holding company that operates through its subsidiaries and provides specialty electrical construction services for the industrial and commercial construction markets and electric utility infrastructure. Its operations are divided into two segments: Transmission and Distribution (T&D) and Commercial and Industrial (C&I).

The company’s Q2 2024 results were impacted by its T&D segment due to clean energy projects scheduled to complete mechanical by the end of 2024. In addition, one project within the company’s C&I segment also had an effect, as it is scheduled to reach substantial completion during Q4 2024.

However, project execution across its business segment remains strong, with a healthy bidding activity. MYR Group (NASDAQ:MYRG) is strategically expanding on existing partnerships and capturing new opportunities throughout markets for continued long-term growth. The growing demand for data centers boosted by the increasing prominence of artificial intelligence is continually offering exciting growth opportunities for the company’s business now and in the coming future.

Its strong customer relationship and breadth of capabilities strategically position it to win contracts for new data center work and help erect the electrical infrastructure necessary to power these facilities. In Q2 2024, in the company’s C&I segment, Western Pacific Enterprises was awarded a Canadian transportation project valued at around $170 million, substantially solidifying its long-standing regional working relationships.

Overall, MYRG ranks first among the 8 most profitable small-cap stocks to invest in. While we acknowledge the potential of small-cap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MYRG but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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