While giants like Apple and Amazon have had a phenomenal year, smaller companies have struggled to gain traction. The Russell 2000 index, which tracks these smaller firms, has dipped by 2.8% this year, a stark contrast to the S&P 500's impressive 13.8% surge. Despite this, hidden gems are waiting to be discovered. This article will guide investors in unearthing 10 small-cap companies that have demonstrated robust sales growth over the past year and have a share price of at least $5. These undervalued companies have the potential to shine bright, offering savvy investors a chance to uncover diamonds in the rough.
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Top 10 Most Successful Small-Cap Companies 2024
The combination of high interest rates and sluggish consumer spending has created a challenging landscape for small-cap companies this year. However, various indicators suggest that these smaller firms are undervalued and trading at a discount compared to historical norms. If the economy gains momentum again, small caps are poised for a potential rebound and could outperform in the coming years, making them an attractive opportunity for investors with a long-term perspective. Here is the list of America’s 10 most successful small-cap companies in 2024:
| RANK | COMPANY | INDUSTRY | 52-WEEK RETURN (%) | REVENUE |
| 1 | Tecnoglass | Construction | 46.3 | 840.8 M |
| 2 | Dorian LPG | Transportation | 141.9 | 493.2 M |
| 3 | Bowman Consulting Group | Construction | 85.4 | 305.7 M |
| 4 | Catalyst Pharmaceuticals | Drugs & Biotechnology | -5.9 | 302.9 M |
| 5 | Riley Exploration Permian | Oil & Gas Operations | 11 | 333 M |
| 6 | ACM Research | Capital Goods | 142.7 | 461.1 M |
| 7 | Oil-Dri Corporation of America | Chemicals | 92.5 | 413 M |
| 8 | AZZ | Chemicals | 24 | 1.5 B |
| 9 | Target Hospitality | Hotels, Restaurants & Leisure | 16.5 | 603.5 M |
| 10 | Powell Industries | Capital Goods | 221.5 | 653.3 M |
Tecnoglass (TGLS), a leading glass manufacturer, tops our list. Recently relocated to Miami, the company operates a vast 4.1 million square foot facility in Barranquilla, Colombia, producing high-quality glass windows and aluminium products for commercial and residential skyscrapers across the Americas. Tecnoglass has capitalized on the Florida construction boom, witnessing a remarkable sales surge to $841 million over the past year, doubling its revenue in less than two years. Its stock has skyrocketed over 1,000% since March 2020. Next on our list is Dorian LPG (LPG), a Stamford, Connecticut-based shipping company specializing in liquefied petroleum natural gas transportation. With a fleet of 25 large tankers, Dorian LPG navigates the global seas, led by Chairman and CEO John Hadjipateras, a seasoned maritime expert with over 50 years of experience and a rich family legacy in shipping and ship ownership dating back to the 19th century.
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This list draws inspiration from Forbes' prestigious ranking of 'America's Most Successful Small-Cap Companies'. To determine the top performers, companies are evaluated based on four key metrics: stock return, sales growth, return on equity, and earnings growth over both a 12-month and five-year period. To ensure a focused approach, financial institutions, real estate investment trusts (REITs), utility companies, royalty trusts, and limited partnerships are excluded from the ranking. By applying these criteria, we uncover the small-cap companies that have demonstrated exceptional performance and growth potential.
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