Small-cap stocks are one of the best ways to create a steady stream of income while tapping into a company’s growth potential. That’s why we’re bringing you the best small-cap stock to buy today.
You see, unlike risky penny stock investments, some small-cap stocks have the strong financials that can generate spectacular returns for investors.
With a market capitalization between $300 million to $2 billion, small-cap stocks have the growth potential to generate strong returns that established companies rarely generate.
The key to being profitable and minimizing risk is to be able to identify small-cap stocks that have the makings of a solid investment.
To find the best small-cap stock to buy now, we use the Money Morning Stock VQScore™ system to identify small-cap stocks that have real growth potential.
Developed from our proprietary valuation system, the VQScore finds small-cap stocks with the highest profit potential through a blended analysis of a company’s earnings potential, growth rate, earnings-per-share acceleration, and market volume.
By using crucial factors to find stocks that are poised to outperform typical returns, investors like you stand a great chance of riding the wave and capitalizing on some serious profits.
And we’ve identified one small-cap stock that is on the cusp of significant growth.
It’s a Brazilian steel company reaping serious returns from the shifting international trade landscape. And it’s trading at a ridiculously low price.
This steel company has already jumped 25% over the last month – and it’s expected to jump another 60% in the next year….
This Is the Best Small-Cap Stock to Buy Now
Companhia Siderúrgica Nacional (NYSE: SID) is a Rio de Janeiro-based steel company. The second-largest steel producer in Brazil, Companhia Siderúrgica Nacional produces a variety of steel products for international industrial firms.
Companhia Siderúrgica has immensely strong financials. The company’s revenue has jumped 44% in just the last two years. At the same time, SID has reduced its overhead from $1.2 million to less than $900,000 — a reduction of more than 25%.
However, the company’s real profit potential is in rising global steel demand. Analysts expect global steel demand will rise by 1.6% over the next year. India alone is anticipated to grow in demand for steel by over 5%.
While American steel producers will be weighed down by the trade war, SID will be able to pick up the slack.
Only a very small portion of its steel exports go to the United States, much of which SID can direct to other international markets. In fact, Companhia Siderúrgica Nacional has stated it does not anticipate any major negative effects on business as a result of these new tariffs.
In fact, the world’s largest institutional investors are doubling down on the company’s stock. Deutsche Bank AG (NYSE: DB) acquired 15,537 shares in the last quarter. In addition, Citadel Advisors LLC increased its share in the stock by 15.1% during the first quarter after acquiring 84,395 shares in the last quarter.
SID currently trades for $2.45. However, this stock is projected to hit $3.15 as trade tensions continue to heat up – a gain of 60%.
Stocks like Companhia Siderúrgica Nacional are easy to identify thanks to the VQScore system.
Source: Money Morning