What is a Small Cap Stock? - Cabot Wealth Network
  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Options Institute Quant Trader
      • Cabot Options Institute Income Trader
      • Cabot Options Institute Fundamentals
      • Cabot Options Institute Earnings Trader
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Options Institute Masters Club
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Institute
    • Cabot Options Institute Masters Club
    • Cabot Options Institute Quant Trader
    • Cabot Options Institute Income Trader
    • Cabot Options Institute Fundamentals
    • Cabot Options Institute Earnings Trader
    • Cabot Options Institute Daily News – Free
  • Events
    • Summit
    • Webinars
  • About
  • Manage Account
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Cabot Wealth Network Logo

  • Home
  • Daily
    • Dividend Stocks
    • Emerging Markets
    • ETFs
    • Growth Stocks
    • How To Invest
    • Income Investing
    • Options Trading
    • Personal Finance
    • Precious Metals Investing
    • Real Estate Investing
    • Small-Cap Stocks
    • Stock Market
    • Value Investing
  • Free Resources
    • Daily
    • Free Reports
    • Previews
    • Videos
    • Webinars
  • Advisories
    • Growth
      • Cabot Growth Investor
      • Cabot Top Ten Trader
      • Cabot Small-Cap Confidential
      • Cabot Early Opportunities
    • Income
      • Cabot Dividend Investor
      • Cabot Income Advisor
    • Options
      • Cabot Options Trader
      • Cabot Options Trader Pro
      • Cabot Profit Booster
      • Cabot Options Institute Quant Trader
      • Cabot Options Institute Income Trader
      • Cabot Options Institute Fundamentals
      • Cabot Options Institute Earnings Trader
    • Diversified
      • Cabot Stock of the Week
      • Cabot Explorer
    • Value
      • Cabot Micro-Cap Insider
      • Cabot Turnaround Letter
      • Cabot Undervalued Stocks Advisor
    • Sector
      • Cabot SX Cannabis Advisor
      • Cabot SX Crypto Advisor
      • Cabot SX Greentech Advisor
      • Cabot SX Gold & Metals Advisor
    • Essentials
      • Cabot ETF Strategist
  • Memberships
    • Cabot Prime Pro
    • Cabot Prime Plus
    • Cabot Options Institute Masters Club
    • Cabot Retirement Club
    • Cabot Sector Xpress Club
    • Cabot Money Club
  • Institute
    • Cabot Options Institute Masters Club
    • Cabot Options Institute Quant Trader
    • Cabot Options Institute Income Trader
    • Cabot Options Institute Fundamentals
    • Cabot Options Institute Earnings Trader
    • Cabot Options Institute Daily News – Free
  • Events
    • Summit
    • Webinars
  • About
  • Sign In
  • Register
  • | Register

Video: Pay Attention to the Data | Cabot Weekly Review

small cap Archives

What is a Small Cap Stock?

Despite what the moniker implies, small cap stocks are the ticket to big returns in today’s stock market environment.

A small cap stock is one that has a market cap of $300 million to $2 billion. That’s the total value of the company’s shares. These stocks may be in biotech or cloud computing, but don’t discount traditional businesses.

A lot of very successful small cap investments come from very basic business models. The corner convenience store, the healthy food manufacturer, the high-volume concrete company, the water refill service … a lot of money can be made by keeping things simple, establishing large positions in small companies with proven business models, and being patient as they grow and/or are bought out by a larger competitor who can improve its own business by a rapid-growth tuck-in acquisition.

And yes, these stocks have just as much, if not more, potential as larger businesses. In fact, the average annual return in the S&P 600 Small-Cap Index over the past 20 years is 10.5%, compared to a 7.9% annual return in the S&P 500 during that time. The numbers don’t lie: these lesser-known stocks are, historically, better performers than large-cap stocks.

Investing in a small cap stock is a good way to earn huge returns. And the smallest of these companies often have the most potential for growth. It’s worth noting, however, that they also carry plenty of risk.

Anytime you buy shares of a small, little-known company, there are a bevy of unknowns. It’s impossible to take the risk completely out of small-cap stock investing. But there are ways to minimize those risks without sacrificing potential profits.

To learn more and start expanding your investing options, download our FREE report, 3 Small-Cap Stocks That Can Work Now Despite COVID-19, right now.

Read More

Video: Pay Attention to the Data | Cabot Weekly Review

May 27, 2022|by Tyler Laundon |

In this week's video, Tyler Laundon talks about the progress large and small caps have made over the last week and how a strong close heading into the long Memorial Day weekend would be a victory for the bulls. He discusses how small are...
Read More

6 Characteristics of Great Growth Stocks

6 Characteristics of Great Growth Stocks

May 27, 2022|by Timothy Lutts

I performed a study on the common threads in great growth stocks I recommended over a 10-year period. Here are six characteristics that stood out.
Read More

Cheap Small-Cap Stocks are Everywhere. Should You Buy Them Yet?

Cheap Small-Cap Stocks are Everywhere. Should You Buy Them Yet?

May 25, 2022|by Tyler Laundon

"Cheap" isn't a word normally associated with small caps. But cheap small-cap stocks abound these days. Is it safe to buy them yet?
Read More

The Best Investment Sites to Research Stocks

The Best Investment Sites to Research Stocks

May 23, 2022|by Cabot Wealth Network

This list of the best investment sites to research stocks aims to help individual investors navigate the sea of stock-related information on the web.
Read More

2 Strong Canadian Small-Cap Stocks

2 Strong Canadian Small-Cap Stocks

May 18, 2022|by Tyler Laundon

My two best Canadian small-cap stocks have strong fundamentals and lots of room to run as the market starts to strengthen again.
Read More

Looking for Early Signs of a Stock Market Bottom? Here’s What to Watch For

Looking for Early Signs of a Stock Market Bottom? Here’s What to Watch For

May 5, 2022|by Mike Cintolo

Looking (hoping?) for signs of a stock market bottom amid this correction? Here are three under-the-radar signs to look for.
Read More

What is ESG Investing?

What is ESG Investing?

May 2, 2022|by Cabot Wealth Network

ESG investing is a way to invest without sacrificing certain morals or ethics. But can you make money investing that way?
Read More

How to Find Small-Cap Stocks in Five Steps

How to Find Small-Cap Stocks in Five Steps

April 26, 2022|by Tyler Laundon

If you know how to find small-cap stocks, you can consistently unlock better-than-average market returns. These five steps will help you find the right small caps.
Read More

Low-Risk Investing in Cardboard Stocks

Low-Risk Investing in Cardboard Stocks

April 26, 2022|by Timothy Lutts

Want a low-risk investing idea? There are probably plenty that show up at your doorstep every week. Let's talk about cardboard stocks.
Read More

Why a Secondary Stock Offering Is a Huge Buy Signal

Why a Secondary Stock Offering Is a Huge Buy Signal

April 25, 2022|by Tyler Laundon

When a company announces a secondary stock offering, it can be a huge buy signal. That was especially the case for these three small-cap stocks.
Read More

Warren Buffett & Small-Cap Stocks

Warren Buffett & Small-Cap Stocks

April 21, 2022|by Tyler Laundon

Warren Buffett can't buy small-cap stocks any more. But here are reasons why you should.
Read More

Start Investing for Retirement, Not Saving

Start Investing for Retirement, Not Saving

April 20, 2022|by Nancy Zambell

It's never too early to start saving for retirement. But if you want to protect your money from inflation, you should really be investing for retirement.
Read More

5 Low-Priced Marijuana Stocks to Consider

5 Low-Priced Marijuana Stocks to Consider

April 18, 2022|by Timothy Lutts

As marijuana becomes increasingly legal in both the U.S. and Canada, it makes sense for growth-oriented investors to pay attention to marijuana stocks.
Read More

2 Keys to Investing After Retirement

2 Keys to Investing After Retirement

April 14, 2022|by Cabot Wealth Network

With no steady paycheck, investing after retirement can be daunting. Here are a couple key strategies to make your money last.
Read More

5 Manufactured Housing REITs and Builders for a Booming Industry

5 Manufactured Housing REITs and Builders for a Booming Industry

April 13, 2022|by Nancy Zambell

Manufactured home communities are one of the fastest-growing niches in the housing industry. And these three housing REITs are capitalizing on the trend.
Read More

3 Oil ETFs to Buy as Crude Prices Rise Again

3 Oil ETFs to Buy as Crude Prices Rise Again

April 12, 2022|by Chris Preston

Oil prices have rebounded nicely from historic lows. As energy stocks rise, these three oil ETFs are an efficient way to play the rally.
Read More

What Long-Term Investing Has to Do with Tiger Woods

What Long-Term Investing Has to Do with Tiger Woods

April 7, 2022|by Chris Preston

Want a perfect illustration of the advantage of long-term investing? Look at what these stocks have done since Tiger Woods last played golf.
Read More

The 3 Most Volatile Stocks Today

April 6, 2022|by Chris Preston

Volatile stocks can be exhausting to have in your portfolio. And that's why you should avoid these three fallen growth stocks.
Read More

Why You Shouldn’t Use the Best Six Months Strategy

Why You Shouldn’t Use the Best Six Months Strategy

April 4, 2022|by Chris Preston

The best six months strategy from November-April can be profitable. But here are two market timing indicators that are more precise.
Read More

What is the NASDAQ Composite Index?

What is the NASDAQ Composite Index?

April 1, 2022|by Cabot Wealth Network

Founded in 1971 the NASDAQ Composite Index is a Representation of the Equities Listed on the NASDAQ Exchange. Keep reading to learn more.
Read More

Older Articles

What Can We Help You With?

What Can We Help You With?

As Seen On

As seen on these popular channels

Our Newsletter Updates

Browse Topics

  • Dividend Stocks
  • Emerging Markets
  • ETFs
  • Growth Stocks
  • How To Invest
  • Income Investing
  • Options Trading
  • Personal Finance
  • Precious Metals Investing
  • Real Estate Investing
  • Small-Cap Stocks
  • Stock Market
  • Value Investing

Recent Previews

  • How to Avoid the Biggest Investing Schemes and Rip-Offs!
  • How to Manage Your Investments and Your Money with the Best Tools Available!
  • How to Buy or Start Your Own Small Business

Latest Videos

Video: Pay Attention to the Data | Cabot Weekly Review

Upcoming Events

3 Metals Outperforming Gold and the Market

FREE WEBINAR: Thursday, June 30, 2022 at 2:00 PM ET with Clif Droke, Chief Analyst, Cabot SX Gold & Metals Advisor

Space is limited so sign up now for FREE.

Free Reports

  • Essential Guide to High-Probability Trading
  • The 7 Best Places in the World to Retire on a Budget
  • How to Invest in Precious Metals: More Than Just Buying the Best Gold Stock
  • 5 Best Stocks to Buy in May
  • Cabot’s Best Dividend Stocks
  • How Options Work—and How to Hedge Portfolios with Options
  • How to Find Undervalued Stocks
  • How to Invest in Stocks and Other Investing Basics
  • Mortgage Interest Rates: How to Find the Best Interest Rates and Other Tips for Securing Low Mortgage Payments
  • 5 Tips for Making Insurance Work for You
  • Technical Analysis of Stocks

Reviews

  • "The Editors Outlooks" Panel Discussion “Really liked hearing outlooks from all disciplines.”

    -anonymous

Enter Your Log In Credentials

This setting should only be used on your home or work computer.

  • Lost your password? Create New Password
  • No account? Sign up

Need Assistance?

call Cabot Wealth Network Customer Service at

1 (800) 326-8826

  • Manage Account
  • About
  • Contact Us
  • Privacy Policy, Terms of Use, and Premium Service User Agreement
  • Analyst Index
  • Glossary
  • Keyword Index
  • Browse Topics
  • Daily Archive

Copyright © 2022 Cabot Wealth Network
Cabot Heritage Corporation
PO Box 2049
201 Washington Street, Suite 215, Salem, MA 01970 USA
Phone: 1 (800) 326-8826
Email: support@cabotwealth.com

Powered by Mequoda Systems

Subscribe to Our Newsletter

Discover the hottest stocks, investing tips and analysis from Cabot analysts in our free Cabot Wealth Daily newsletter delivered right to your inbox.

Cabot Wealth 50 Plus