In 2017, the small-cap stock market presented investors with a plethora of opportunities to uncover hidden gems. This article delves into the US small-cap stocks that emerged as winners during that year, providing insights and analysis to help you make informed investment decisions.
Understanding Small Cap Stocks
Small cap stocks refer to shares of companies with a market capitalization ranging from
Top Performing US Small Cap Stocks in 2017
- Canaan Inc. (CAN)
- Market Cap: $3.1 billion
- Industry: Software
- Performance: Up 300%
Canaan Inc., a venture capital firm, experienced a meteoric rise in 2017. The company's strong performance can be attributed to its investments in successful startups and its expansion into new markets.
- Workhorse Group Inc. (WKHS)
- Market Cap: $1.5 billion
- Industry: Electric Vehicles
- Performance: Up 300%
Workhorse Group, a provider of electric vehicles and powertrains, saw significant growth in 2017 due to increasing demand for eco-friendly transportation solutions.
- Kodiak Robotics (KODK)
- Market Cap: $1.6 billion
- Industry: Autonomous Vehicles
- Performance: Up 200%
Kodiak Robotics, a developer of autonomous trucks, attracted significant attention in 2017. The company's innovative technology and strategic partnerships contributed to its impressive growth.
- Ardent Entertainment Group Inc. (ARDN)
- Market Cap: $500 million
- Industry: Entertainment
- Performance: Up 250%
Ardent Entertainment Group, a film production company, experienced a surge in its stock price in 2017, thanks to the success of its popular movies.
Factors Contributing to Small Cap Stock Success
Several factors contributed to the success of small cap stocks in 2017:
- Rising Technology Stocks: The tech sector experienced significant growth, with many small-cap companies benefitting from the trend.
- Increased Investment in Emerging Markets: Investors showed greater interest in emerging markets, leading to increased investments in small-cap companies with operations in these regions.
- Loose Monetary Policy: The Federal Reserve's loose monetary policy encouraged investors to seek higher returns, making small-cap stocks an attractive option.
Case Study: Canaan Inc.
Canaan Inc.'s success in 2017 can be attributed to its strategic investments in successful startups. One of its notable investments was in Canva, a graphic design platform that has grown to become a global leader in the industry. By investing in innovative companies like Canva, Canaan Inc. not only gained financial returns but also positioned itself as a thought leader in the venture capital industry.
Conclusion
2017 was a fruitful year for US small cap stocks. Investors who identified and invested in these hidden gems reaped substantial returns. By understanding the factors contributing to small cap stock success and staying informed about market trends, investors can continue to uncover valuable opportunities in the small cap space.
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