3 Top Small-Cap Stocks to Buy Right Now

In volatile stock markets, small-cap stocks tend to grossly underperform their large-cap counterparts. While the S&P 500 still is down about 10.6% year-to-date, the Russell 2000, which covers small-cap stocks, remains down by about 23%.

However, small-cap stocks with strong fundamentals should also roar back to life in a market recovery. Investors looking to capitalize on that tendency should buy into companies that have strong underlying businesses, robust fundamentals, and expanding addressable markets that give them the chance to grow revenues at a fast pace.

Large-cap companies often have huge cash reserves to draw from and can more easily ride out a downturn. Smaller companies tend to be more vulnerable. However, because they can more easily deliver high growth rates, strong small-cap companies -- such as tech companies Zuora (NYSE: ZUO), Impinj (NASDAQ: PI), and PagerDuty (NYSE: PD) -- can experience accelerated rebounds as well.

Source Fool.com