Last Updated on August 21, 2021 by Henry John
When you are looking to invest in companies on the ground floor or you are on the hunt for high-risk-high-rewards stocks, micro-cap stocks are one of the major categories of stocks to strongly consider.
Microcap stocks are usually stocks of companies valued under $1 billion and above $50 million. Usually, companies with such a market cap can easily grow 100% and even 1000% within a few years.
Think about how easier it will be for you to increase your net worth from $100 to $1,000 compared to growing it from $1 million to $10 million, although both scenarios represent a 10x growth.
In theory, it will be easier for good micro-cap stocks to double their market capitalization than for Apple (AAPL), a $2 trillion company, to double its.
There is less room for Apple to grow its business operations and increase earnings double-fold within the next 3 years. But for a $50 million micro-cap company in the $400 billion cloud market that’s a strong possibility.
If you are interested in investing in micro-cap stocks, here are 10 micro-cap stocks to consider:
1. Outbrain Inc. (OB)
Market Cap: $893 M
Outbrain Inc. operates an online content recommendation platform worldwide.
It offers various solutions for media partners, such as personalized feeds and data-driven recommendations; a solution that maximizes user engagement; and a web-based dashboard to manage and control various aspects of its platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetize the content through customized data-driven advertising.
The company also provides a web platform with ad inventory that helps users to connect with audiences on premium digital properties; and various engaging native ad formats, such as video, carousels, and app install ads to advertisers, as well as enables online consumers to discover new things through recommendation feeds on their favorite media.
Outbrain Inc. was incorporated in 2006 and is based in New York, New York.
2. Air T, Inc. (AIRT)
Market Cap: $96.5M
Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sale, commercial jet engines and parts, and printing equipment and maintenance services in the United States and internationally.
The company’s Overnight Air Cargo segment offers air express delivery services. As of March 31, 2021, this segment had 66 aircraft under the dry-lease agreements with FedEx.
Its Ground Equipment Sales segment manufactures, sells, and services aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other specialized equipment.
This segment sells its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers.
Its Commercial Aircraft, Engines, and Parts segment offers commercial aircraft trading, leasing, and parts solutions; commercial aircraft storage, storage maintenance, and aircraft disassembly/part-out services; commercial aircraft parts sales, exchanges, procurement services, consignment programs, and overhaul and repair services; and aircraft instrumentation, avionics, and a range of electrical accessories for civilian, military transport, regional/commuter and business/commercial jet, and turboprop aircraft.
This segment also provides composite aircraft structures, and repair and support services.
Air T, Inc. was incorporated in 1980 and is based in Denver, North Carolina.
3. Retail Value Inc. (RVI)
Market Cap: $526.7M
Retail Value, Inc. operates as a real estate investment trust, which engages in owning and operating retail shopping centers.
It holds assets in the continental U.S. and Puerto Rico and is managed by one or more subsidiaries of SITE Centers Corp.
RVI focuses on realizing value in its business through operations and sales of its assets.
The company was founded in December 2017 and is headquartered in Beachwood, OH.
4. Sphere 3D Corp. (ANY)
Market Cap: $90.8M
Sphere 3D Corp. provides data management, and desktop and application virtualization solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
It enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms.
The company offers HVE converged and hyper-converged infrastructure solutions, such as HVE-STACK high-density server solution; HVE-VELOCITY high availability dual enclosure storage area network solution; and HVE 3DGFX, a virtualized desktop infrastructure solution.
It also provides G-Series appliance to simplify Windows application migration and to enable access from various devices; and G-Series Cloud solution to provide a virtual appliance to eliminate the task of designing, implementing, and maintaining localized application-hosting environments and related hardware.
In addition, the company provides SnapServer network attached storage solutions, including SnapServer XSR40, a 1U server that can be configured with up to four SATA III and SSD drives; SnapServer XSR120, a 2U server, which can be configured with up to 12 SATA III, SAS, and SSD drives; GuardianOS, a storage software solution; and Snap Enterprise Data Replicator that provides multi-directional WAN-optimized replication.
Sphere 3D Corp. markets its products under the SnapServer, HVE ConneXions, and UCX ConneXions brand names.
The company sells its products through its distributor and reseller network to small and medium businesses, and distributed enterprises.
Sphere 3D Corp. is based in Toronto, Canada.
5. Crexendo, Inc. (CXDO)
Market Cap: $126.3M
Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally.
It operates in two segments, Cloud Telecommunications and Web Services.
The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services.
This segment is also involved in the sale and lease of cloud telecommunications equipment.
In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name.
The Web Services segment provides website hosting and other professional services.
The company was formerly known as iMergent, Inc. and changed its name to Crexendo, Inc. in May 2011. Crexendo, Inc. was incorporated in 1995 and is headquartered in Tempe, Arizona.
6. Arlo Technologies, Inc. (ARLO)
Market Cap: $475.4M
Arlo Technologies, Inc., together with its subsidiaries, provides smart connected devices to monitor the environments in real-time with a Wi-Fi or a cellular connection in the Americas, Europe, the Middle-East and Africa, and the Asia Pacific regions.
It offers Arlo Q and Arlo Q Plus, an indoor wired solution that allow users to monitor their surroundings; Arlo Go, a LTE-enabled wire-free camera that provides untethered mobile security; Arlo Baby, a baby monitor with air quality and temperature sensors, motion and audio detection, and advanced night vision; Arlo Chime, a product that plugs into standard wall outlet and pairs with the Arlo Audio Doorbell to play various ringtones or act as a siren; and Arlo Ultra, an integrated spotlight and crystal-clear two-way audio with advanced noise cancellations camera.
The company also offers Arlo Pro 3, an integrated spotlight with color night vision camera; Arlo Video Doorbell delivers direct-to-mobile video calls and personalized alerts; and Arlo Floodlight Camera, a wire-free variant LED camera, as well as Arlo Essential Spotlight; Arlo Ultra 2; and Arlo Essential XL Spotlight.
In addition, it provides Arlo accessories, such as charging accessories, device mounts, and device skins; Arlo Essential Wire-Free Video Doorbell that joins a robust ecosystem of home security products and services; and Arlo Pro 4 Wire-Free Spotlight.
Further, the company offers Arlo app for iOS and Android devices that allow users to connect various devices; and prepaid services, including seven-day cloud video storage with the ability to connect up to five cameras and 90 days of customer support.
The company offers its products through retail channels, wholesale distribution and wireless carrier channels, and paid subscription services.
Arlo Technologies, Inc. was incorporated in 2018 and is headquartered in San Jose, California.
7. Culp, Inc. (CULP)
Market Cap: $172.5M
Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in North America, the Far East, Asia, and internationally. It operates in two segments, Mattress Fabrics and Upholstery Fabrics.
The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components.
The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services.
Culp, Inc. was founded in 1972 and is headquartered in High Point, North Carolina.
8. iPower Inc. (IPW)
Market Cap: $125.9M
iPower Inc. supplies hydroponics equipment online in the United States.
It offers various products, including advanced indoor and greenhouse grow-light systems, ventilation systems, activated carbon filters, nutrients, growing media, hydroponic water-resistant grow tents, trimming machines, pumps, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products under the iPower and Simple Deluxe brands through its Zenhydro.com website and various third-party e-commerce channels.
The company was formerly known as BZRTH Inc. and changed its name to iPower Inc. in September 2020.
iPower Inc. was founded in 2018 and is based in Duarte, California.
9. Allied Esports Entertainment Inc. (AESE)
Market Cap: $72.1M
Allied Esports Entertainment Inc., a premier public esports and entertainment company, engages in the Allied Esports and World Poker Tour (WPT) businesses worldwide.
It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events.
The company also operates ClubWPT, an online poker club; PlayWPT, a web and mobile social poker product; and Alpha8, a social poker product.
In addition, it engages in the brand and music licensing business.
Allied Esports Entertainment Inc. was founded in 2018 and is headquartered in Irvine, California.
10. Caleres, Inc. (CAL)
Market Cap: $913.1M
Caleres, Inc. engages in the retail and wholesale of footwear in the United States, China, Canada, China, and Guam.
It operates through Famous Footwear and Brand Portfolio segments.
The company offers licensed, branded, and private-label athletic, casual, and dress footwear products to women, men, and children.
Its retail shoe stores provide brand name athletic, casual, and dress shoes, including Nike, Skechers, adidas, Vans, Converse, Crocs, Puma, Birkenstock, Asics, New Balance, Under Armour, Bearpaw, Timberland, and Sperry, as well as company-owned and licensed brands, such as Dr. Scholl’s Shoes, Blowfish Malibu, LifeStride, Naturalizer, Circus by Sam Edelman, Franco Sarto, and Ryka.
The company also operates naturalizer.com, naturalizer.ca, vionicshoes.com, samedelman.com, allenedmonds.com, drschollsshoes.com, lifestride.com, francosarto.com, ryka.com, bzees.com, and zodiacshoes.com, as well as Vince.com, blowfishshoes.com, and veronicabeard.com websites. In addition, it designs, sources, and markets footwear to retail stores, such as national chains, online retailers, department stores, mass merchandisers, independent retailers, and catalogs.
Further, the company wholesales men’s apparel, leather goods, and accessories under the Allen Edmonds brand; Italian footwear Franco Sarto brand; women’s shoe collection under the Vince brand; athletic footwear for women under the RykÃ¤ brand; and women’s footwear under the Bzees brand, as well as Via Spiga brand.
It operates approximately 1,086 retail stores.
The company was formerly known as Brown Shoe Company, Inc. and changed its name to Caleres, Inc. in May 2015. Caleres, Inc. was founded in 1878 and is headquartered in St. Louis, Missouri.