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

3. American Public Education, Inc. (NASDAQ:APEI)

Renaissance Technologies Equity Stake: $52.3 Million

Number of Hedge Fund Holders: 27

Stock Upside Potential: 23.18%

Market Cap: $943 Million

American Public Education, Inc. (NASDAQ:APEI) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. This education stock has gained more than 40% year-to-date, and analysts expect it to rise more from the current level.

On May 13, DA Davidson boosted its price target on American Public Education, Inc. (NASDAQ:APEI) shares to $64 from $58 while keeping a Buy rating on the stock. The firm based its decision on the company’s strong Q1 results, which showed revenue rose 6.2% YoY to $174.7 million and exceeded the Street’s expectation of $165.53 million. The company posted EPS of $0.94, which increased from $0.41 a year ago and beat the projected $0.50.

Active-duty military personnel form a large base of APEI’s students. The Middle East conflict did cause some headwinds for the company’s active-duty students portion. Still, the company recorded registration growth during Q1. DA Davidson pointed out that registration grew by a solid high single-digit in the Army segment, noting that this demonstrates the strength of the program and brand.

In the Veterans and Families segment, growth continued in the high-teens. This showed the company’s ability to offset the temporary weakness in active-duty enrollment.

American Public Education, Inc. (NASDAQ:APEI) is a provider of postsecondary education. It operates through three wholly owned university subsidiaries offering degree and certificate courses in diverse disciplines. Its education programs cover areas like national security, military studies, justice studies, business administration, and nursing.