5 Small-Cap Stocks with High Potential

In this article, we will take a look at the 5 small-cap stocks with high potential. You can skip this part and go to 14 Small-Cap Stocks with High Potential.

5. Magnachip Semiconductor Corporation (NSYE:MX)

Number of hedge funds: 31

Magnachip Semiconductor Corporation (NSYE:MX) is one of the best small-cap stocks to buy with high potential. Magnachip Semiconductor Corporation (NSYE:MX) sells analog and mixed-signal semiconductor platform solutions in high-growth markets like IoT, automotive, consumer and industrial. Magnachip bulls believe Magnachip Semiconductor Corporation (NSYE:MX) has some strong growth catalysts. Its EPS estimate for 2022 was positive and analysts believe its EPS in 2023 will also remain in the green territory despite several headwinds. Magnachip Semiconductor Corporation (NSYE:MX)’s revenue took a hit in the second half of the year amid a slump in demand due to supply chain issues and lockdowns in China. With the Chinese economy turning back to normal, analysts believe the company could see normality in its operations.

During the third quarter, Magnachip Semiconductor Corporation (NSYE:MX)’s adjusted EPS came in at $0.02, beating estimates by $0.08. For the fourth quarter, Magnachip Semiconductor Corporation (NSYE:MX) said it expects revenue to come in between $57 million to $62 million, versus the consensus estimate of $78.77 million.

Here is what Altron Capital Management has to say about Magnachip Semiconductor Corporation (NYSE:MX) in its Q4 2021 investor letter:

“MagnaChip Semiconductor Corp. (NYSE:MX). While the previous buyout offer from Wise Road Capital did not go through as many expected, the company is still in talks with other potential buyers. Furthermore, the company announced a USD 75 million share buyback, which represents a significant percentage of the company’s shares. While we do not generally enter positions with the anticipation of a buyout, it is the case that a MagnaChip acquisition will be the most likely outcome.”