With the U.S. economy looking strong as we head into 2025, many investors are eyeing large-cap tech companies that have seen significant growth. However, for those looking for more affordable opportunities with potential for growth, small-cap companies focused on the U.S. market may be the way to go.
Small-Cap Companies: A Targeted Approach to U.S. Economy Exposure
Here are some key reasons why small-cap companies are worth considering:
- Focused Exposure: Small-cap firms offer a targeted way to invest in the U.S. economy without the risk of micro-cap companies.
- M&A Opportunities: A pick-up in M&A activity could benefit small-cap companies.
- Lower Interest Rates: With interest rates expected to trend lower in 2025, small-cap companies may find it easier to finance growth and scale operations.
1. IMNM: Breakout Drug Candidate
Immunome (NASDAQ: IMNM) is a biotech firm with a market cap of $876 million. The company’s lead asset, AL102, is in a Phase 3 trial for certain types of fibromatosis and has strong potential as a treatment. While IMNM shares have seen significant growth, investors should consider whether the price already reflects the potential of AL102.
2. AENT: Efficiency and Growth
Alliance Entertainment Holding (NASDAQ: AENT) is an entertainment industry e-commerce company on the rise. With improved efficiency and operations driving growth, AENT shares have climbed steadily. Despite the growth, the stock appears undervalued, with potential for further upside.
3. HNRG: Data Center Partnership Potential
Hallador Energy Company (NASDAQ: HNRG), a steam coal company, recently announced a potential partnership with a data center developer. If the agreement materializes, it could boost the company’s top line and lead to further growth opportunities.
In conclusion, while large-cap tech companies may seem enticing, small-cap firms focused on the U.S. market offer unique opportunities for investors. By considering companies like IMNM, AENT, and HNRG, investors can diversify their portfolios and potentially benefit from the growth potential of these promising small-cap stocks.