In this article, we discuss the best small-cap stocks to buy. If you want to read our detailed analysis of the small-cap stocks, go directly and see Top Investors’ Stock Portfolio: 10 Small-Cap Stocks To Buy.
5. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Number of Hedge Fund Holders: 34
Market Cap: $2.9 billion
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is an American biopharmaceutical company that ranks fifth on our list of the best small-cap stocks to buy.
Perceptive Advisors is the largest shareholder of Amicus Therapeutics, Inc. (NASDAQ:FOLD) in Q2, owning shares worth $222.8 million. On the whole, the hedge fund sentiment remained positive for the company in Q2, as 34 hedge funds tracked by Insider Monkey were bullish on the company, compared with 30 in the previous quarter. The total value of these stakes is $832.5 million.
This September, Cowen reiterated an Outperform rating on Amicus Therapeutics, Inc. (NASDAQ:FOLD), with a $29 price target. The stock returned 10.83% in the past six months.
Carillon Tower Advisers mentioned Amicus Therapeutics, Inc. (NASDAQ:FOLD) in its Q1 2021 investor letter. Here is what the firm has to say:
“Amicus Therapeutics is a biotechnology company focused on discovering, developing, and delivering novel high-quality medicines for people living with rare metabolic diseases. The firm’s shares slumped after it reported disappointing results in the phase three trial for its drug to be used in the treatment of late-onset Pompe disease (LOPD). Unfortunately, the trial data did not generate statistical significance in the primary endpoint.”
4. Cannae Holdings, Inc. (NYSE:CNNE)
Number of Hedge Fund Holders: 34
Market Cap: $2.88 billion
Cannae Holdings, Inc. (NYSE:CNNE) is an American holding company that actively manages and operates a group of companies and investments. The company stands fourth on our list of the best small-cap stocks to buy.
Recently, Oppenheimer reiterated its Buy rating on Cannae Holdings, Inc. (NYSE:CNNE), with a $52 price target, presenting a 30.2% upside.
As of Q2 2021, 34 hedge funds tracked by Insider Monkey have stakes in Cannae Holdings, Inc. (NYSE:CNNE), compared with 36 in the previous quarter. The total value of these stakes is $522.3 million.
Madison Funds mentioned Cannae Holdings, Inc. (NYSE:CNNE) in its Q2 2021 investor letter. Here is what the firm has to say:
“Cannae Holdings is an investment holding company chaired by Bill Foley, an investor-executive with one of the most impressive long-term entrepreneurial track records in corporate America. Over the past three and a half decades, he has been responsible for buying and growing numerous software, data analytics, and fintech businesses, including four that are publicly traded today, with market caps of $9 billion, $12 billion, $13 billion, and $90 billion. Cannae itself became independently public several years ago, and has amassed a strong record of market-beating results.
We purchased Cannae stock at an approximately 30% discount to its net asset value (“NAV”). As the large majority of Cannae’s value is in publicly-traded
companies, its NAV can be reliably estimated, which makes the discount somewhat puzzling. Two investments account for a substantial portion of the value: minority stakes in Dun & Bradstreet and Ceridian HCM Holding, both of which were acquired by Cannae in leveraged buyout transactions and have returned multiples of the initial equity invested. Ceridian has matured as an investment position, and Cannae has been selling down its stake for the past year and we expect that to continue. Dun & Bradstreet is still in the middle innings of the investment timeline, and we expect Cannae to benefit greatly from further growth in value. We also own a separate position in Dun & Bradstreet in our portfolio. Cannae also has investments in a myriad of venture-stage companies and companies beginning to truly monetize their scale. Some of them look very promising, and one or two winners would add tremendously to growth in NAV.”
3. Seer Inc (NASDAQ:SEER)
Number of Hedge Fund Holders: 16
Market Cap: $2.2 billion
Seer is operating in the proteomics market whose market size is expected to reach $64 billion in 2024. The company’s Proteograph technology, which was licensed from Harvard, has a huge potential for growth, with analysts expecting the company to capture about 10% of the proteomics market.
Cathie Wood‘s fund has a $49 million stake in the company as of the second quarter.
2. Niu Technologies – ADR (NASDAQ: NIU)
Number of Hedge Fund Holders: 13
Market Cap: $1.96 billion
Despite regulatory pressures in China, Niu Technologies – ADR (NASDAQ: NIU) remains one of the best small-cap plays to consider. In the third quarter, the company sold 397,079 e-scooters, up 58.3% Y/Y. In August, investment firm Needham kept a Buy rating on the stock.
Of the 13 funds tracked by Insider Monkey having stakes in the company, ARK Investment Management of Catherine D. Wood is one of the biggest, with a $74 million stake in the company, as of the end of June.
1. Avaya Holdings Corp. (NYSE:AVYA)
Number of Hedge Fund Holders: 37
Market Cap: $1.64 billion
Communications technology company Avaya Holdings Corp. (NYSE:AVYA) recently announced to integrate Microsoft’s cloud computing services into its CPaaS platform. The company tops our list of the best small-cap stocks to buy.
In Q2 2021, Avaya Holdings Corp. (NYSE:AVYA) posted an EPS of $0.75, beating the estimates by $0.43. The company reported revenue of $732 million, beating the consensus by $2.28 million.
Alkeon Capital Management is the largest shareholder of Avaya Holdings Corp. (NYSE:AVYA) in Q2, with shares worth $104.5 million. In addition to this, 37 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2, the same as in the previous quarter. The total worth of these stakes is $435.9 million.
You can also take a look at Billionaire Steve Cohen’s Top 10 Small-Cap Stock Picks and 10 Small-Cap Stocks With Huge Growth Potential
