2 small-cap stocks with 40% to 60% upside potential

In this era, super large stocks are the focus of attention. Artificial intelligence (AI). However, investing in small-cap stocks can offer significant growth opportunities. This is because small-cap stocks are often less established and have more room for growth.

Small-cap stocks have the potential for rapid growth. Because these businesses are smaller and less mature, they may have more room to expand, introduce new products and services, and gain market share. However, they are also usually more volatile.

If you're looking for higher returns and can tolerate higher volatility, investing in small-cap stocks may be a smart move right now. Here are two small-cap stocks with potential for gains of 40% to 60% over the next 12 months.

ACM Research Stock

As demand for semiconductor chips soars in the era of digital transformation, ACM Research (ACMR)Semiconductor manufacturing equipment and materials manufacturers are benefiting.

Valuation is $1.5 billion, ACMR stock rises 38.2% year-to-dateoutperforms the S&P 500 Index ($SPX) 7.5% increase.

Founded in 1998, ACM Research specializes in the development, manufacture and sale of semiconductor process equipment for wafer cleaning and polishing.

As demand for semiconductor chips soared, ACMR experienced significant revenue growth, driven by increased demand for advanced wafer cleaning and polishing solutions. Sales have soared from his $107 million due to his position as a key supplier to the semiconductor industry. 2019 Earnings jumped from $0.33 to $1.63 per share in the same period.

in FY2023, ACM's revenue increased 43.4% year over year to $558 million. ACM shipments, which include completed and pending (not yet realized) deliveries, increased 11%. Adjusted profit increased by an impressive 96.4%.

Recently, the company announced that: Preliminary first quarter This is the actual results for 2024. The company expects sales to be in the range of $150 million to $152 million, a significant increase of 102% to 105%. This expansion is expected to be driven by a 163%-169% increase in first-quarter shipments, reaching $240 million from $235 million.

The company reaffirmed its overall fiscal 2024 revenue range of $650 million to $725 million, representing an increase of 17% to 30%. Meanwhile, analysts expect sales to rise 25.4% to $699.4 million. Furthermore, in fiscal 2025, sales and profits are expected to increase by 23.8% and 26.7%, respectively. ACM is scheduled to report its first quarter results on May 8th.

Considering the potential growth that AI could generate in the semiconductor industry, ACMR stock is attractively valued at the moment, trading at 13 times expected 2025 earnings.

Following the provisional results of the first quarter, benchmark company. Analyst Mark Miller reiterated his rating on ACMR as a “buy.” “The significant increase in shipment volumes confirms the expansion of the company's business capabilities and market reach,” he said. Miller was impressed with ACM's growth trajectory and set a $38 price target on the stock.

Overall, Wall Street views ACMR stock as “strong buy” Of the seven analysts covering ACMR, six rate it as a “strong buy” and one recommends it as a “moderate buy.”

The average analyst price target is $37.81, which is 40% above current levels. plus. The high price target of $40 means it has a 48% upside potential over the next 12 months.

Digi International Stock

digi international (DGII)was founded in 1985 and has a long history of serving the Internet. The Company provides Internet of Things (“IoT”) products, services, and solutions to a wide range of industries, including healthcare, transportation, utilities, and retail.

$924 million worth of digi stocks fall 1% year-to-date may underperform the broader market.

One of Digi International's key strengths is its ability to meet the growing demand for IoT solutions across multiple sectors. This demand increased revenue. $254 million It will reach $444 million in fiscal year 2019 and $444 million in fiscal year 2023.

However, recent Second quarter Performance in FY2024 was weak due to macroeconomic challenges. Sales declined 3% to $108 million, but adjusted net income was flat year over year at $0.49. Still, the company's annual recurring revenue (ARR) increased 11% to $110 million.

Although IoT products, services and solutions revenue decreased in the quarter, ARR increased due to higher subscription revenue. An increase in ARR indicates customer confidence in Digi's products and services.

Management believes that the second half of fiscal 2024 will be challenging due to uncertainty as to when macroeconomic conditions will stabilize and normal sales cycles will return.

As a result, Digi expects third-quarter sales to decline 4% to 7%, to between $103 million and $107 million. Adjusted net income could range from $0.47 to $0.51 per diluted share (diluted net income of $0.50). same time last year.

For the full year 2024, Digi expects to achieve the following goals: ARR growth rate is 5%; However, revenue is likely to decline by 5% year over year. On the other hand, analysts expect sales to decline 2.19% to $435 million and increase by 6.6% in fiscal 2025.

Looking ahead, management remains committed to achieving its long-term goal of doubling ARR and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $200 million within the next five years. Stated.

Overall, Wall Street views DGII stock as “strong buy” was the unanimous recommendation of all six analysts interviewed.

The average price target is $41.50, 61.2% above current levels. Additionally, the high $45 price target suggests 74.8% upside potential over the next 12 months.

On the date of publication, Sashree Mohanty I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
In this era, super large stocks are the focus of attention. Artificial intelligence (AI). However, investing in small-cap stocks can offer significant growth opportunities. This is because small-cap stocks are often less established and have more room for growth.Small-cap stocks have the potential for rapid growth. Because these businesses are smaller and less mature, they may have more room to expand, introduce new products and services, and gain market share. However, they are also usually more volatile.

If you're looking for higher returns and can tolerate higher volatility, investing in small-cap stocks may be a smart move right now. Here are two small-cap stocks with potential for gains of 40% to 60% over the next 12 months. ACM Research StockAs demand for semiconductor chips soars in the era of digital transformation, ACM Research (ACMR)Semiconductor manufacturing equipment and materials manufacturers are benefiting. Valuation is $1.5 billion, ACMR stock rises 38.2% year-to-dateoutperforms the S&P 500 Index ($SPX) 7.5% increase.www.barchart.com
Founded in 1998, ACM Research specializes in the development, manufacture and sale of semiconductor process equipment for wafer cleaning and polishing.

As demand for semiconductor chips soared, ACMR experienced significant revenue growth, driven by increased demand for advanced wafer cleaning and polishing solutions. Sales have soared from his $107 million due to his position as a key supplier to the semiconductor industry. 2019 Earnings jumped from $0.33 to $1.63 per share in the same period.in FY2023, ACM's revenue increased 43.4% year over year to $558 million. ACM shipments, which include completed and pending (not yet realized) deliveries, increased 11%. Adjusted profit increased by an impressive 96.4%. Recently, the company announced that: Preliminary first quarter This is the actual results for 2024. The company expects sales to be in the range of $150 million to $152 million, a significant increase of 102% to 105%. This expansion is expected to be driven by a 163%-169% increase in first-quarter shipments, reaching $240 million from $235 million. The company reaffirmed its overall fiscal 2024 revenue range of $650 million to $725 million, representing an increase of 17% to 30%. Meanwhile, analysts expect sales to rise 25.4% to $699.4 million. Furthermore, in fiscal 2025, sales and profits are expected to increase by 23.8% and 26.7%, respectively. ACM is scheduled to report its first quarter results on May 8th. Considering the potential growth that AI could generate in the semiconductor industry, ACMR stock is attractively valued at the moment, trading at 13 times expected 2025 earnings.

Following the provisional results of the first quarter, benchmark company. Analyst Mark Miller reiterated his rating on ACMR as a “buy.” “The significant increase in shipment volumes confirms the expansion of the company's business capabilities and market reach,” he said. Miller was impressed with ACM's growth trajectory and set a $38 price target on the stock. Overall, Wall Street views ACMR stock as “strong buy” Of the seven analysts covering ACMR, six rate it as a “strong buy” and one recommends it as a “moderate buy.”The average analyst price target is $37.81, which is 40% above current levels. plus. The high price target of $40 means it has a 48% upside potential over the next 12 months. www.barchart.com
Digi International Stockdigi international (DGII)was founded in 1985 and has a long history of serving the Internet. The Company provides Internet of Things (“IoT”) products, services, and solutions to a wide range of industries, including healthcare, transportation, utilities, and retail. $924 million worth of digi stocks fall 1% year-to-date may underperform the broader market.

www.barchart.com
One of Digi International's key strengths is its ability to meet the growing demand for IoT solutions across multiple sectors. This demand increased revenue. $254 million It will reach $444 million in fiscal year 2019 and $444 million in fiscal year 2023. However, recent Second quarter Performance in FY2024 was weak due to macroeconomic challenges. Sales declined 3% to $108 million, but adjusted net income was flat year over year at $0.49. Still, the company's annual recurring revenue (ARR) increased 11% to $110 million. Although IoT products, services and solutions revenue decreased in the quarter, ARR increased due to higher subscription revenue. An increase in ARR indicates customer confidence in Digi's products and services.Management believes that the second half of fiscal 2024 will be challenging due to uncertainty as to when macroeconomic conditions will stabilize and normal sales cycles will return.As a result, Digi expects third-quarter sales to decline 4% to 7%, to between $103 million and $107 million. Adjusted net income could range from $0.47 to $0.51 per diluted share (diluted net income of $0.50). same time last year.

For the full year 2024, Digi expects to achieve the following goals: ARR growth rate is 5%; However, revenue is likely to decline by 5% year over year. On the other hand, analysts expect sales to decline 2.19% to $435 million and increase by 6.6% in fiscal 2025. Looking ahead, management remains committed to achieving its long-term goal of doubling ARR and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $200 million within the next five years. Stated. Overall, Wall Street views DGII stock as “strong buy” was the unanimous recommendation of all six analysts interviewed.The average price target is $41.50, 61.2% above current levels. Additionally, the high $45 price target suggests 74.8% upside potential over the next 12 months.
www.barchart.com
On the date of publication, Sashree Mohanty I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/2-small-cap-stocks-with-40-to-60-upside 2 small-cap stocks with 40% to 60% upside potential