Three of the Top Small Cap Stocks to Watch in 2019

January 3, 2019, By fierceinvestor,
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To help readers identify the best investments, we wanted to take a quick look at some of the top small cap stocks in sizable industries.

Top Stock No. 1 – Zix Corporation (ZIXI)

Zix Corporation, for example, provides email encryption, threat protection, archiving, bring-your-own-device security, and data loss prevention solutions for the healthcare, financial services, insurance, and government sectors primarily in the United States.

With data breaches and privacy issues of great concern, drawing attention to cybersecurity issues, ZIXI is in one of the hottest sectors seeing sizable demand.  In its most recent quarter, the company had net income of $2.5 million, or five cents a share. Adjusted EPS was nine cents. Revenue came in at $17.9 million. For the current quarter, it expects EPS of nine cents on revenue of $18 to $18.2 million.

Top Stock No. 2 – Glu Mobile (GLUU)

Glu Mobile is another hot small cap stock watch.

It develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp.

The game developer behind Kim Kardashian: Hollywood, and Deer Hunter has seen its stock rocket nearly 90% higher this year. Impressive bookings, long shelf lives for its biggest hits and guidance that’s increased time and time again have helped.  Revenue is up 31% in the first three quarters of 2018.  That’s on top of 43% growth in 2017.

Top Stock No. 3 — Laredo Petroleum (LPI)

Finally, Laredo Petroleum, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Laredo’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties and the gathering of oil and liquids-rich natural gas from such properties, primarily in the Permian Basin of West Texas.

It just recently authorized a $200 million repurchase program.

“At current market prices, this program will enable the Company to repurchase approximately 10% of our outstanding shares at, what we believe, is a substantial discount to the true value of the Company,” stated Randy A. Foutch, Chairman and Chief Executive Officer. “Our balance sheet strength after the divestment of our interest in the Medallion-Midland Basin pipeline system offers several avenues to accelerate value recognition for our current shareholders. We believe this repurchase program is the most compelling and accretive avenue at this time.”

With solid fundamental growth and a growing position in the Permian Basin, we believe Laredo Petroleum could see higher prices and become a potential acquisition target.  In our opinion, LPI is in a great position to do well with exposure to the U.S. oil production boom with an established position in one of the hottest U.S basins.

 

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