Large-cap companies have dominated the stock market over the past year, with FAANG stocks generating hefty returns despite a global economic slump. Multi-billion-dollar industries have been capitalizing on their extensive market reach and global supply chains, along with significant financial backing, to lead the market.
As the developed world settles into remote lifestyles even after successful vaccine deployment, as is anticipated, the demand for technology is expected to rise. But, because mega-cap tech stocks are now trading at sky-high valuations, it might be a good idea to bet on small-cap tech stocks that are well positioned to benefit from emerging trends, driven by their disruptive technologies and strategic partnerships.
We believe promising small-cap stocks like Repay Holdings Corp. (RPAY – Get Rating), Ultra Clean Holdings, Inc. (UCTT – Get Rating), and Ideanomics, Inc. (IDEX – Get Rating) should be on the watchlist of every technology investor. Betting on these stocks could be slightly riskier, but they have high potential for growth and are trading at affordable prices.
RPAY operates as a payment technology enterprise. It is involved in facilitating bespoke transactions payment processing solutions for clients worldwide. Over the past year, RPAY’s stock has gained 61.4%.
RPAY recently partnered with LiveVox, a contact center platform, to deliver additional digital payment options to users along with greater processing capabilities. RPAY has also partnered with the Strategic Regional Healthcare Organization (SRHO) to provide SRHO’s members with new payment-automation capabilities.
For the quarter ended September 30, 2020, the company saw an increase in revenue of 43% compared to the same period last year. RPAY’s gross profit also increased 40% during the same period.
RPAY is expected to see revenue growth of 23.4% in 2021. The company’s EPS is estimated to grow 15.1% in 2021 and at a rate of 7.4% per annum over the next five years.
How does RPAY stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
B for Industry Rank
B for Overall POWR Rating
The stock is ranked #45 of 224 stocks in the Financial Services (Enterprise) industry.
UCTT develops, designs, and manufactures systems that have applications in semiconductors and other manufacturing processes. The company has operations primarily in North America, Asia, and Europe. UCTT’s stock has returned 78.9% over the past year.
UCTT recently announced that it had entered an agreement to acquire…
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