The Federal Reserve’s decision to cut rates has sparked renewed interest in small- and mid-cap stocks, as they are expected to benefit from the rate-cutting cycle. At Extreme Investor Network, we believe that investing in smaller market cap companies can be a lucrative strategy, especially as these stocks tend to outperform when borrowing costs are reduced.
Oppenheimer recently highlighted some of its favorite plays in the small-cap space, with a focus on companies with market caps between $1 billion and $10 billion. One such company is Cogent Communications, an internet services provider that is poised to benefit from the rise of artificial intelligence. Analyst Timothy Horan believes that Cogent Communications has valuable assets that are currently underappreciated, making it an attractive investment opportunity.
Chemed, a health-care services stock, is another top pick from Oppenheimer. With segments in hospice care and plumbing services, Chemed offers investors a diverse portfolio with strong growth potential. Analyst Michael Wiederhorn is optimistic about Chemed’s prospects, citing favorable demographics and market share gains as key drivers of growth.
For investors looking to capitalize on the growing trend of sports betting, Genius Sports is recommended by Oppenheimer. This online sports-betting data provider has established itself as a leader in the industry, with partnerships that extend well into the next decade. Analyst Jed Kelly sees significant upside potential for Genius Sports, with a price target that suggests a 37% surge in the stock.
Overall, small-cap stocks offer exciting opportunities for investors, especially in today’s market environment. At Extreme Investor Network, we are committed to providing our members with valuable insights and recommendations to help them navigate the world of investing. Stay tuned for more updates and analysis from our team of experts.