Continued good news about the economy is starting to thaw parts of the market that have been quietly chugging along in recent years — especially in small-cap tech.
For most of these stocks, the recovery began from rock-bottom levels last year. But as the economy stabilized and slowly strengthened, these stocks started their rise. Simply put, these seven small-cap tech stocks to buy are ready to rock ‘n’ roll.
There are two main factors at play here. First, in a growing economy, small stocks usually perform better than large stocks. They’re starting from a smaller base of business and a growing order base makes the grow much faster. It’s like comparing a mature plant to a seedling. The same amount of water has a greater effect on the growth rate of the seedling.
Second, we’re in the beginnings of a cyclical upturn in tech. There is a new wave of demand for cutting-edge equipment that will take broadband and telecommunications to the next level. These companies are laser focused on important niches in this trend.