3 Micro-Cap Stocks That Could Be Moonshots


  • These high-risk, high-reward companies may present compelling buy opportunities for the right investor.
  • Magnachip Semiconductor (MX): Has had private equity offers in the past above its current share price.
  • uniQure N.V. (QURE): Has a promising drug pipeline and has been trimming the fat off its operations.
  • KalVista Pharmaceuticals (KALV)​: Trial results paint a bullish upside for KALV.
micro-cap stocks - 3 Micro-Cap Stocks That Could Be Moonshots

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Amid the valuations of large-cap stocks, notably tech stocks in the Magnificent 7 declining, this has led to this list of micro-cap stocks. Not only are investors expected to rotate into smaller and under-capitalized companies, but these companies also have unique theses that should keep investors interested.

The micro-cap stocks to buy discussed in this article are far from the marquee names we are used to seeing in business media. Instead, they’ve been quietly earning their keep. These stocks have carved out powerful catalysts for themselves, which may give them the potential to deliver multi-bagger returns.

So, here are the best micro-cap stocks to buy for November.

Magnachip Semiconductor (MX)

a machine manufactures semiconductor chips in a factory setting. AI Semiconductor Stocks
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Magnachip Semiconductor (NYSE:MX) designs and manufactures analog and mixed-signal semiconductor solutions. Their products are used to enhance the performance and image quality in various electronic devices. 

The bull case for Magnachip Semiconductor Corporation centers on the potential for a revenue recovery in the near future. This is true despite recent setbacks. Management’s buyback program signals confidence, with a solid net cash position and no debt. 

Specifically, analysts project revenue to increase from ~$240 million to $290 million for 2024. This is happening with a low estimate of $265 million, and one analyst forecasting $380 million for 2025.

The company also has approximately $4.2 per share in net cash, with a robust buyback program ($25 million last quarter and an additional $50 million announced). This is indicative of a strong balance sheet and bullish prospects.

What’s better is that there was a past private equity offer of $30 per share for MX. This suggests that it may trade at significantly undervalued levels today.

uniQure N.V. (QURE)

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uniQure N.V. (NASDAQ:QURE) focuses on developing innovative cures that can transform lives by delivering gene therapies for diseases.

QURE stock hinges on its strategic reorganization aimed at reducing operating expenses. This is expected to save approximately $180 million across three years. The company’s strong cash position positions it well for future growth. The strong cash position is enough to fund operations into Q2 2027. The company also has the prioritization of promising gene therapy candidates like AMT-130 for Huntington’s disease in its back pocket.

Other reasons to be bullish is that QUR maintains a robust development pipeline despite a reduced workforce and more streamlined research efforts​.

Biotech stocks always have lots of room for growth, but QURE especially has good reasons for investors to consider it one of those micro-cap stocks to buy.

KalVista Pharmaceuticals (KALV)​

a scientist with protective equipment and microscope in a lab, OBSV stock
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KalVista Pharmaceuticals (NASDAQ:KALV)​ specializes in the discovery, development, and commercialization of oral small molecule protease inhibitors for diseases with significant unmet medical needs. The company’s proprietary portfolio targets conditions like hereditary angioedema (HAE) and diabetic macular edema (DME).

There are some good reasons for investors to consider KALV stock. Its sebetralstat presents a bullish case with its strong Phase 2 data for HAE treatment and potential market disruption as an oral therapy. 

The company’s solid cash position provides a near-term operational runway, while the anticipated positive Phase 3 trial outcomes could trigger a significant stock appreciation due to the high short interest ratio.

With these factors considered, it’s therefore one of those micro-cap stocks to buy.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-micro-cap-stocks-that-could-be-moonshots/.

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