3 Small-Cap Stocks With Large-Cap Potential
Individual investors have a key advantage compared to their institutional counterparts -- their opportunity set is much larger. Investing in small-cap stocks, which have market capitalizations between $300 million and $2 billion, can be lucrative for those willing to look where most of the market isn't. With patience and a long-term time horizon, some of these companies have the ability to grow into large-cap stocks and achieve a valuation that exceeds $10 billion.
I think Digital Turbine (NASDAQ: APPS), Macerich (NYSE: MAC), and Trupanion (NASDAQ: TRUP) all possess qualities that could propel them from small-cap status into the big-cap club.
Digital Turbine is a platform business that works with wireless carriers and cellphone manufacturers to preinstall applications on new devices, and then sells these application slots to large app-driven companies such as Amazon and Netflix. The company generates revenue for every installation, and, in some cases, when the app is opened on a device.
Source Fool.com
