Key Factors
Small- and micro-cap shares are extra risky, presenting alternatives and dangers.
Hovnanian’s inventory value surge is cited for example of volatility working in buyers’ favor.
Emphasis on the significance of thorough analysis earlier than investing in micro-cap shares.
5 shares we like higher than Eastman Chemical
On the subject of investing in micro-cap shares, it might probably typically be an actual problem to differentiate the potential winners from those who may not provide a lot near-term upside. Nevertheless, a good way to uncover some potential leads is at conferences the place buyers can meet with the administration groups of those smaller firms.
As the biggest impartial occasion for micro-cap firms, the annual Microcap Convention usually yields some attention-grabbing concepts. This 12 months’s convention version wrapped up earlier this month with shows from over 75 completely different micro-cap firms.Get Eastman Chemical alerts:Signal Up
Basically, micro-cap shares are these of firms with a market capitalization of lower than $300 million. Regardless of their smaller measurement, some micro-cap firms have the potential to punch above their weight inside their respective industries, so listed here are among the extra attention-grabbing inventory concepts from the 2024 Microcap Convention.
Eden Analysis
U.Ok.-based Eden Analysis LON: EDEN focuses on plastic-free, sustainable options for crop safety, animal well being and client merchandise, with a give attention to sustainable biopesticides and plastic-free encapsulation know-how. The corporate’s imaginative and prescient is to turn out to be a “world chief in sustainable crop safety.”
Eden focuses on sustainably defending high-value crops, enhancing yields, and marketability. To date, the corporate has commercialized two of its merchandise. The primary product, Mevalone, is a bio-fungicide bought in 14 European nations, the U.S., Australia and Kenya.
Eden Analysis partnered with Eastman Chemical NYSE: EMN to commercialize its second product, a nematicide known as Cedroz. The businesses are concentrating on 29 nations, and thus far, 11 have granted full approval to the product, together with the U.S., Mexico, Spain and Italy.
Genie Power
With its market cap of $498.7 million, Genie Power NYSE: GNE is technically a small-cap inventory. The corporate is a retail supplier of each inexperienced and traditional electrical energy and natural-gas provide. It supplies each on-site and group solar-energy options, specializing in deregulated markets inside the united statesGenie Power additionally works with industrial enterprises, utility-scale photo voltaic builders and group photo voltaic builders on the planning, financing, design, building, and operation of photo voltaic tasks aimed toward maximizing the worth of photo voltaic era.
By its retail section, the corporate serves owners and small, medium, and enormous companies, supplying electrical energy from both renewable or typical sources. Genie Power additionally supplies carbon-offset pure gasoline and traditional pure gasoline provide and end-to-end power advisory providers.
The corporate’s Renewable Options division serves group photo voltaic packages, partnering with builders to finance their tasks, purchase prospects and handle the venture. Genie Power additionally allows industrial enterprises to leverage on-site photo voltaic era to cut back their power prices.
Hovnanian Enterprises

Hovnanian is a nationwide homebuilder that designs, constructs and markets quite a lot of for-sale housing in almost 130 residential communities in 13 completely different states. In fiscal 2023, the corporate generated $2.76 billion in complete revenues on 5,473 house deliveries, making it one of many largest homebuilders within the U.S.
Hovnanian has operations in Arizona, California, Delaware, Florida, George, Maryland, New Jersey, Ohio, Pennsylvania, South Carolina, Texas, Virginia, Washington, D.C., and West Virginia. Its houses are marketed and bought below the commerce identify Ok. Hovnanian Houses.
Investing in micro- and small-cap shares
Small- and micro-cap shares are usually extra risky than large-cap names, though that may be each good and unhealthy. The surge in Hovnanian’s inventory value that took it from micro-cap to small-cap standing in a matter of months is one instance of how that volatility can work in buyers’ favor in the event that they select properly.
Nevertheless, with the potential of sizable returns additionally comes an opportunity for important danger. Sadly, it may be difficult to seek out public info on some micro-cap shares. Nonetheless, most of the finest firms voluntarily disclose pertinent info to buyers even when their small measurement prevents them from being required to take action.
Moreover, smaller firms that commerce on main exchanges could also be required to reveal extra info. In fact, it is all the time a good suggestion to analysis an organization totally earlier than investing in it.Earlier than you think about Eastman Chemical, you may wish to hear this.MarketBeat retains monitor of Wall Avenue’s top-rated and finest performing analysis analysts and the shares they suggest to their shoppers every day. MarketBeat has recognized the 5 shares that high analysts are quietly whispering to their shoppers to purchase now earlier than the broader market catches on… and Eastman Chemical wasn’t on the record.Whereas Eastman Chemical presently has a “Average Purchase” ranking amongst analysts, top-rated analysts consider these 5 shares are higher buys.View The 5 Shares Right here Seeking to keep away from the trouble of mudslinging, volatility, and uncertainty? You’d have to be out of the market, which isn’t viable. So the place ought to buyers put their cash? Discover out with this report.Get This Free Report