In this article, we will take a look at the 5 small-cap stocks with huge growth potential. For a detailed analysis of these stocks, go directly to the 10 Small-Cap Stocks with Huge Growth Potential.
5 Small-Cap Stocks With Huge Growth Potential
5. Monarch Casino & Resort, Inc. (NASDAQ: MCRI)
Number of Hedge Fund Holders: 14
Ranking 5th on the list of small-cap stocks with huge growth potential is casino resort operator Monarch Casino & Resort, Inc. (NASDAQ: MCRI). The Las Vegas-based company was founded in 1972 and operates several casino resorts in Nevada and Colorado, including Atlantis Casino Resort Spa and Monarch Casino Resort Spa Black Hawk.
The company has a market cap of $1.36 billion. The company recorded an all-time high net revenue of $75 million in the first quarter of 2021, up 46.9% from $51 million in the first quarter of 2020. The gradual opening of operations of the company’s newly transformed Monarch Casino Resort Spa Black Hawk in Colorado, which began in the fourth quarter of 2020, boosted first-quarter results. The 52-week price range of Monarch Casino & Resort, Inc. (NASDAQ: MCRI) is $26.50-76. The stock has gained 118% in the last twelve months.
At the end of the fourth quarter of 2020, 14 hedge funds in the database of Insider Monkey held stakes worth $120.7 million in the firm, up from 10 funds in the preceding quarter having stakes worth $86.7 million.
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4. Cutera, Inc. (NASDAQ: CUTR)
Number of Hedge Fund Holders: 16
Medical device manufacturer Cutera, Inc. (NASDAQ: CUTR) is one of the small-cap stocks with huge growth potential. The California-based company, founded in 1988, now develops and sells cosmetic laser systems for hair and tattoo removal and treatment of benign vascular lesions. The aesthetic devices are sold to dermatologists, plastic surgeons, and other professionals all over the world.
The company has a market cap of $542 million. The company’s revenue rose 54.1% to $49.7 million in the first quarter of 2021, with capital equipment and skincare revenues showing particular growth. The 52-week price range of Cutera, Inc. (NASDAQ: CUTR) is $11.02-$38.8. Shares of CUTR surged 151% over the past twelve months.
There were 16 hedge funds that reported owning stakes in Cutera, Inc. (NASDAQ: CUTR) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $104 million.
3. The Chefs’ Warehouse, Inc. (NASDAQ: CHEF)
Number of Hedge Fund Holders: 16
Specialty food products distributor The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) ranks 3rd on the list of small-cap stocks with huge growth potential. The company produces premium quality imported and local specialty food including truffles, hormone-free poultry, custom-cut beef, caviar, artisan charcuterie, and unique oil and vinegar. The company serves fine dining restaurants, specialty food stores, cruise lines, hotels, and menu-driven establishments. The company operates an e-commerce platform where The Chefs’ Warehouse, Inc. sells center-of-the-plate goods directly to customers.
The company has a market cap of $1.2 billion. The company’s net revenue in the first quarter of 2021 decreased 25.4% to $280.2 million from $375.4 million in 2020. On April 5th, Lake Street Capital Markets analyst Ben Klieve initiated coverage of The Chefs’ Warehouse, Inc. with a Buy recommendation and a $38 price target. The 52-week price range of The Chefs’ Warehouse, Inc. is $11.06-$35.57. Shares of CHEF increased 132% over the past twelve months.
There were 16 hedge funds that reported owning stakes in Cutera, Inc. (NASDAQ: CUTR) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $126 million.
Image by S. Hermann & F. Richter from Pixabay
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.
1. Enova International, Inc. (NYSE: ENVA)
Number of Hedge Fund Holders: 20
Topping the list of the 10 small-cap stocks with huge growth potential is Chicago-based fintech firm Enova International, Inc. (NYSE: ENVA). The company’s artificial intelligence and machine learning-powered lending platform offers online financial services to clients in the US, Canada, Australia, and Brazil. Founded in 2011, the company also provides analytics-as-a-service designed to automate or augment customer decisions in fraud and credit risk, payments, and collection.
The company has a market cap of $1.2 billion and total revenues of $259 million in the first quarter of 2021. According to 5 Wall Street analysts, the stock received an Overweight rating with an average price target of $43.50, which implies an upside potential of 27%. The 52-week price range of Enova International, Inc. (NYSE: ENVA) is $14.92-$41.47. Shares of ENVA climbed 232% over the past twelve months.
There were 20 hedge funds that reported owning stakes in Enova International, Inc. (NYSE: ENVA) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $197 million.
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