3 Top Small-Cap Stocks to Buy Right Now
When the stock market becomes ill, small-cap stocks often get the sickest of all. That's what's happened since the market swooned over worries about the impact of the COVID-19 pandemic. The iShares Russell 2000 ETF, weighted toward smaller stocks, is down 25% since the beginning of the year, compared with a 14% decline in the S&P 500.
But that decline spells opportunity for patient investors who are willing to wait out the current concerns, believing that the economy will return to normal in the long term. The volatility of small-cap stocks can cause the share prices to snap back in a recovery, as long as the underlying businesses have the financial strength to withstand the downturn.
Here are three stocks with depressed prices that should come out the other end of a business slowdown just fine, and they represent three different approaches to profiting from an economic recovery. Invitae (NYSE: NVTA) is a business that's not strongly linked to the overall economy; shares of Zuora (NYSE: ZUO) were cheap even before the downturn and are now cheaper; and YETI Holdings (NYSE: YETI) has been delivering high growth that should return when broader consumer demand picks back up.
Source Fool.com
