Top Stocks Under 5 – Small-Cap Market

Small-cap is a term used to categorize companies with relatively small market capitalization. This is calculated by multiplying a firm’s current share price with the total number of shares outstanding.

Small-cap stocks refer to shares of ownership of small businesses. These enterprises perform well in an economic recovery as interest rates are still low. Besides, the stocks offer them access to funds for their growth. However, they are the riskiest stocks during an economic downturn.

Typically, small caps perform well in the first quarter and then hibernate. This year started in seamless alignment with seasonality. In February, this aspect raised the small-cap index to a four-month high, but in May, the rally faltered severely.

With that said, below are the top 5 stocks under 5 that have continued to outperform the sector.

Workhorse Group ($WKHS)

With its headquarters in Cincinnati, Ohio, Workhorse Group Incorporated is an American manufacturing firm focused on utility and electrically powered vehicles. This company also develops real-time telematics systems that monitor performance such as light and medium-duty pickup trucks as well as cargo vans. Besides that, it manufacturers eVTOL aircraft and delivery drones.

In the last week of August, Workhorse Group marked $4.21 per share as compared to a previous closing price of $4.26. However, it showed a 607.35% rise within its YTD performance, with highs and lows ranging $0.37 and $5.37 during the 52-weeks period, in comparison to the simple moving average of 155.880% in the last 200 days.

The current dividend yield for Workhorse Group owners is set at 0, highlighting the return investors expect irrespective of its performance in the upcoming period. Additionally, the growth of sales from one quarter to another is recording -96.80%, suggesting the company’s progress.

Since General Motors announced its interest in selling its Ohio complex, Workhorse stock has soared. In July this year, the stock posted a remarkable 18.6% rise on speculation that the company aims at signing a big contract with the United States Postal Service (UPS).

Conformis ($CFMS)

Founded by Philipp Lang in 2004 and with headquarters in Billerica, MA, Conformis Inc is a medical technology company creates, produces and sells joint replacement implants. The company provides customized knee replacement products such as iUni, a customized unicompartmental knee replacement product to cure the lateral or medical component of the knee, iDuo a customized bicompartmental knee replacement system, iTotal PS, a posterior cruciate ligament substituting product and iTotal CR, a cruciate-retaining product.

Besides, it offers Conformis Hip System and iJigs a one use patient-specific instrumentation. This company sells and markets its products to medical facilities through distributors, independent sales representatives, and sales force. In recent trading, this company’s shares hit a target price of $4.17 from $4.36 in the previous quarter.

During the last day of trading, Conformis opened at 2.02, acquired a maximum price of 2.025 and dropped to 1.79 before closing the session at 2.0, a total of 626,652 shares were traded. Conformis is ranked in the upper part of a falling and wide trend in the short term, an aspect that poses a good selling opportunity for short term trader. The company’s excellent performance can be attributed to improved and steady growth steered by existing and currently launched products that offer a growing distributor base a full line to sell.

Small-cap stocks are experiencing a bit of a resurgence following a tumultuous previous year. Investors who had disregarded riskier stocks in preference of more defensive ones over the heightened volatility during summer are now reverting to relatively cheaper priced equities, for instance, exchange-traded funds (EFTs) and small caps that contain them.

The iShares Russell 2000 EFT that tracks stocks with smaller market capitalizations experienced its most significant weekly inflows in approximately a year during the week that ended September 6. Those inflows amount to $1.5 billion, and in the final days of August, the inflows totaled to $340 million. Following a bottom-up on August 27, the iShares EFT has garnered approximately 9% in comparison to the 5% gain of the S&P over the same period.

Hebron Technology ($HEBT)

The company is a high-tech venture that integrates research and development with producing and selling sanitary items. These include valves, pipe fittings, pumps, and self-control actuators. Hebron also offers wide-ranging solution service for the maintenance, engineering installation, and technical advice. The customers include renowned Chinese pharmaceutical firms and global corporations from the United States, Australia, Germany, Italy, Brazil, Thailand, and South Africa.

According to 12Stocks.com, the following is a concise analysis of Hebron’s stock performance; HEBT’S YTD is up 526.25%. Additionally, the company is outperforming the entire stock market by 506.52%. HEBT’s weekly return has increased by 19.57% and is surpassing the general market by 20%. Despite the fact that the mid and long term trends of the enterprise are not sound, the short term ones are getting better.

As of September 17, 2019, NASDAQ reported that HEBT had opened at 4.34 with a high of 4.49, a low of 4.22, and closed at 4.36.

HEBT has attained a good reputation and accessibility to the capital market due to a number of reasons. These include excellent research, efficient management team, substantial cost benefits, and development capacities. The firm was listed on NASDAQ on December 27, 2016. In so doing, Hebron was cheered on to become a vigorous, standardized, and global company. The company insists on providing premium products and distinguished service to both local and foreign clients.

Orion Energy Systems ($OESX)

From the initial handshake to the ultimate installation of a fixture, Orion is dedicated to providing products that illuminate a user’s world in ways beyond imagination. The corporation is a forerunner in the reform of industrial and commercial constructions with contemporary, enterprise-grade systems of lighting, and solutions to energy projects. Additionally, Orion provides work-space and environmental advantages to a broad range of customers, including approximately “40% of the Fortune 500.”

This Thursday, September 19, 2019, Orion’s YTD was as follows: a high of $2.95 and a low of $2.87 with a share volume of 93,310.

Orion’s success, as per some customers, is anchored in the corporation’s “Midwestern roots.”

Mike Altschaefl, Orion’s Board Chair, and CEO indicated that the first-quarter performance is a reflection of a very stable beginning of what is anticipated to be a transformational year for the form’s financial and business performance. In view of that, Q1’20 revenue improved by 207% to $42.4M, and this highlights outcomes from a prime retrofit contract involving a national account.

This reveals the company’s strength where its capability to design, distribute, and install customized, and high-tech LED controls and lighting solutions in a 100% turnkey way is a core differentiator.

Stereotaxis ($STXS)

Driven by the need to be innovative, Stereotaxis is a worldwide leader in ground-breaking robotic technologies which are designed to boost the treatment of the arrhythmia and execute endovascular procedures. These technologies aid physicians in the provision of unparalleled patient care. To achieve that, Stereotaxis promotes robotic safety and precision, enhances lab productivity and efficiency, and improved incorporation of procedural data.

The Stereotaxis Robotic Navigation System forms a fragile magnetic field around patients that can be maneuvered by 3D mapping system and an integrated computer. The system was implemented by the facilities such as Baptist Heart & Rhythm Center, South Texas. Through such medical centers, the company is successfully championing the treatment of unusual heartbeat.

This Thursday, $STXS opened at 4.38 with a volume of 208,938 and+276.51% Year-to-Date. In addition, the day’s range was at 4.07 – 4.50. Stereotaxis stock has captured the attention of traders as recently the company has witnessed over 90.58K shares in terms of trading volumes during the last trading period. This is way above the average trading volumes recorded by the firm.

Such success can be linked with the Relative Strength Indicator, which can reveal what is happening with regards to the stock’s value underneath the data. STXS stock is exhibiting results of 96.52%, and this indicates that the stock is not oversold or overbought at the moment.

Summary

Small-cap defines the classification of firms which involves the multiplication of a company’s current share price with the overall number of outstanding shares. There are various companies that are worth noting in the stock market. At present, these are the best stocks under 5, and investors need to keep watch on their exceptional performance. They include:

• Workhorse Group ($WKHS)
• Conformis ($CFMS)
• Hebron Technology ($HEBT)
• Orion Energy Systems ($OESX)
• Stereotaxis ($STXS)

Successful trading!