We have talked about small-cap stocks on Blooming Wealth before due to their potential to outperform their larger-cap counterparts in addition to outperforming the market as a whole.
Our goal is to help you grow your net worth and small-cap stocks are one of the ways you can do just that. By spending your time and money wisely, you can accumulate wealth faster than those around you.
So, which small-cap stocks are the ones you should keep an eye on in 2020? Let’s find out.
1. Principia Biopharma Inc (PRNB)
As its name implies, Principia is a biopharmaceuticals company, based in San Francisco. Specifically, this company focuses on oral therapies for patients with significant needs in oncology and immunology.
PRNB makes this list because it has been seeing considerable positive growth as of late. To be precise, its stock price has skyrocketed by over 50% in just the past two months. Not only that, but despite some fluctuation in the stock’s price at times, its price has never been higher than it is currently.
Of course, that leaves open the possibility that you could be “buying high,” but pharma companies have been some of the most lucrative in recent years. Thus, it seems there is a strong possibility that Principia’s stock could only continue to climb.
2. SpringWorks Therapeutics Inc (SWTX)
Another biopharma company, SpringWorks focuses on developing medicines for patients with severe, rare diseases and cancer. They are based in Stamford, CT, and have only been around since 2017. Despite their short history, they have been doing some great things.
For example, in October, 2019, SpringWorks announced the start of a clinical trial in their efforts to cure a rare disease. Since then, SWTX has been on an upswing.
Its stock price actually hit a low in mid-November 2019, but its price has increased more than 50% since then. Be sure to keep an eye on SWTX in 2020.
3. Materialise NV (MTLS)
Materialise NV is a Belgian 3D printing company. If you know anything about 3D printing, you know that it is an exciting and still-maturing technology. Considering all of the real-world problems that 3D printing can help solve, it makes sense that a company like Materialise would be on the rise.
While this stock has had its ups and downs, it has been on an upward trend for about the past five years. At one point in 2016, its stock price was under $6; now, the price is approaching $18.
4. Victoria Gold Corp (VITFD)
You might think the gold rush is the thing of the past, but gold is still a valuable material for many. This Toronto, CA-based company has seen an increase in its stock price as of late and may be worth keeping on your radar.
At the end of 2015, its stock price was under $2, but its price has nearly quadrupled since then, rising to $6.50 per share. While this is still a modest price, the fact that the price has increased nearly four times illustrates the power of small-cap stocks.
5. Fangdd Network Group Ltd (DUO)
Fangdd Network Group Ltd is a Chinese real estate company that buys, sells, and rents houses. Needless to say, there is a vast real estate market in China, but you can also buy its stock as a US-based stock trader.
This is a newer company that was founded in 2011. However, they had their initial public offering (IPO) in November 2019. The stock began trading around $13 per share and has since grown to around $14.60 per share – not a bad increase in that amount of time. Given that real estate never goes out of style, this small-cap stock is one to watch in 2020.
6. Kiniksa Pharmaceuticals Ltd (KNSA)
Kiniksa Pharmaceuticals is another pharmaceuticals company with a brief history. It was founded in 2015 and, interestingly, is headquartered in Bermuda. Despite the myths and legends, pharmaceuticals is not an industry that is likely to disappear within the clutches of the Bermuda Triangle.
This company started trading publicly in May, 2018. Its shares did initially trade around $20 – higher than its current price – but the company’s stock has been on a rebound. By October, 2019, its stock price had fallen almost to $5/share. Since then, it has climbed to over $13/share. As such, it will be interesting to see what this small-cap stock does in 2020.
7. Tilly’s Inc (TLYS)
If you live in the US, you may have heard of Tilly’s as it is a consumer-facing company. In particular, it is a chain of clothing stores that sells a variety of different clothing items and apparel.
This company has been around since 1982 and first started trading publicly back in 2012. Its stock has fluctuated quite a bit since then, but it is on an upswing at the moment. In the summer of 2019, its shares were trading around $7.50; now, they are trading over $12 and the price appears to still be increasing.
8. CGG SA (CGGYY)
This seemingly obscure company is one to watch. It’s actually one of the few companies on this list that isn’t new – it’s an oil company that was founded in 1931 and is based in Paris. Its IPO wasn’t exactly recent, either, having been publicly-traded since 1999.
Its stock price was much, much higher in the past, but it has been increasing as of late. In December, 2018, the price was barely above $1, but it has since risen to almost $3. It will be interesting to see how this small-cap stock fares in the year ahead.
9. Lands’ End, Inc. (LE)
Despite the competitive nature of the clothing industry, Land’s End manages to be another stock worth keeping in your peripherals. Land’s End is also another company that has been around a while – since 1963, to be exact. It has been trading publicly since 2014.
The reason Land’s End (LE) makes this list is due to its recent stock performance. Though its stock price soared to around $54 per share when it first started trading publicly before losing most of that value, it has been doing better as of late. To be exact, it was trading around $7.24/share in September 2019; since then, the price has more than doubled, to $16.22 per share.
10. Turning Point Therapeutics Inc (TPTX)
Turning Point Therapeutics is another health care company, specifically focused on clinical-stage precision oncology – in other words, cancer treatment. It was founded in 2013 and is based in California.
Its stock has only been trading publicly since April of 2019. At that time, the share price was around $28, but it has climbed to about $54.50 since then. The fact that its shares have almost doubled in such a short time is fairly impressive, especially since the share price didn’t start at pennies. I would definitely keep an eye on this small-cap stock in 2020.