Hedge Funds Were Right About These 5 Small-Cap Stocks

In this article, we shall be going over how hedge funds were right about these 5 small-cap stocks. To read our detailed analysis of well-performing industries in 2022, go directly and see Hedge Funds Were Right About These 10 Small-Cap Stocks.

5. Cutera Inc. (NASDAQ:CUTR)

Market Cap (As of August 17): $1.00B

Number of Hedge Fund Holdings: 23

YTD Gains (As of August 17): 28.61%

Headquartered in Brisbane, California, Cutera Inc. (NASDAQ:CUTR) is an American medical device company which manufactures aesthetic laser systems. Investor interest in the stock has dipped slightly in the first quarter of 2022, with 23 hedge funds long the stock, compared to 24 hedge funds in the preceding quarter. As of Q2 2022, Israel Englander’s Millennium Management is the leading shareholder in the company. Other prominent hedge funds to increase their stakes in Cutera Inc. (NASDAQ:CUTR) in Q2 2022 are Pura Vida Investments and Point72 Asset Management.

In June 2022, Cutera Inc. (NASDAQ:CUTR) received FDA clearance for AviClear, the first and only laser-based acne treatment, representing a significant market opportunity for the medical device company. According to experts, Cutera’s (NASDAQ:CUTR) spending on AviClear represents a viable alternative to prescription-strength Isotretinoin “retinoids” class of chemicals, making for a good long-term investment.

In Q2 2022, Cutera Inc. (NASDAQ:CUTR) posted an EPS of -$0.24, trailing behind estimates of -$0.15 by $0.09. According to analysts, the company has projected growth estimates of 25% per year for the next five years. On August 5, Piper Sandler analyst Matt O’Brien lowered the price target on Cutera Inc. (NASDAQ:CUTR) to $55 from $65, maintaining at Outperform rating on the stock.  According to the analyst, the company’s Q2 revenues beat consensus but fell short of the bottom-line due to heightened spending. However, O’Brien notes that with AviClear FDA clearance, and the traditional business continuing to perform well,  Cutera Inc. (NASDAQ:CUTR) has emerged as a hedge fund favorite in 2022.