Based on the recent triple-digit moves in the Dow Jones Industrial Average, volatility could heat up this summer on the stock market. But investors shouldn’t consider this as a sign that they should throw in the towel — on the contrary, buying some great picks on a pullback could be one of the best moves you can make in the next few months.
And remember, volatility is only bad if you’re holding on to investments caught in a downdraft. As we’ve seen time and time again, small and agile stocks can manage to find big opportunities in a narrow market based on innovative products or shrewd leadership.
Take electric vehicle manufacturer Tesla (TSLA), which has seen its stock soar 200% this year on bright headlines including its first quarterly profit; full, early repayment of a government loan; and continued demand for its iconic Model S sedan.
I wouldn’t buy Tesla now, of course, with shares being so frothy. But there are other small companies poised for a breakout … if you know where to look.
Here are five such small-caps that are red-hot, and could generate big-time profit for investors who buy them on a dip: