15 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies

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6. Liquidity Services Inc (NASDAQ:LQDT)

Renaissance Technologies Equity Stake: $45.91 Million

Number of Hedge Fund Holders: 18

Stock Upside Potential: 29.41%

Market Cap: $1.1 Billion

Liquidity Services Inc (NASDAQ:LQDT) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. The stock has gained around 15% year-to-date, and the Street sees more upside potential in it.

In its March quarter report released on May 7, Liquidity Services Inc (NASDAQ:LQDT) posted strong improvements in revenue and earnings. It also finished the period with a solid cash position.

Gross merchandise volume jumped 6% YoY to $389.9 million. That powered revenue up 4% to $120.7 million. The GovDeals, CAG, and software solutions segment led the topline growth. GovDeals is the company’s largest business segment in both gross merchandise volume and revenue. Liquidity Services said the segment continued to grow in the March quarter despite adverse weather events that impacted business in certain regions.

The company attributed this growth to expanding the service level it offers sellers and buyers in this segment. Registered buyers across the company’s platforms hit 6.3 million, reflecting an 8% YoY increase.

The company posted a net income of $7.5 million, compared to $7.1 million in the prior year. The GAAP EPS of $0.23 increased from $0.22 in the prior year. Liquidity Services closed the quarter with a cash balance of $204.0 million and no debt.

Maryland-based Liquidity Services Inc (NASDAQ:LQDT) operates B2B online marketplaces that facilitate the resale of a wide variety of items. Its platforms enable businesses and government agencies to sell surplus, returned, or end-of-life items. The company also provides software solutions.

While we acknowledge the potential of LQDT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LQDT and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies.

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