5 Small-Cap Stocks With Huge Growth Potential

2. Bonanza Creek Energy, Inc. (NYSE: BCEI)

Number of Hedge Fund Holders: 17

Bonanza Creek Energy, Inc. (NYSE: BCEI) is a Denver-based independent energy corporation that acquires, explores, and develops onshore oil and natural gas assets in the U.S. Bonanza Creek Energy, Inc. ranks 2nd in our list of the small-cap stocks with huge growth potential as it expands the company to form a merger with oil and gas firm Extraction Oil & Gas, Inc. (NASDAQ: XOG). Bonanza Creek Energy, Inc. will become one of the most durable and advanced producers in the D.J. Basin following the merger of the two independent gas firms in Denver, renamed Civitas Resources Inc. The $2.6 billion merger is expected to close in the third quarter of 2021.

Bonanza Creek Energy, Inc. has a market cap of $1.2 billion. The company benefited from the recent gas price spike and posted a net oil and gas revenue of $74.2 million, up from $62.6 million in the fourth quarter of 2020. Truist Securities analysts upgraded its recommendation to Buy Bonanza Creek Energy, Inc. (NYSE: BCEI) and set its price target to $40. The 52-week price range of Bonanza Creek Energy, Inc. (NYSE: BCEI) is $14.92-$41.47. Shares of BCEI increased 155% over the past twelve months. At the end of the fourth quarter of 2020, 17 hedge funds in the database of Insider Monkey held stakes worth $41.8 million in the firm, up from 16 funds in the preceding quarter.