Cheap Growth Stocks: Top US Small Caps to Watch

In the world of investing, finding the right mix of cheap and growing stocks is a sought-after strategy. When it comes to small-cap stocks, these opportunities often present themselves in the United States. In this article, we'll delve into the world of cheap growth stocks and highlight some top US small caps that investors should consider adding to their portfolios.

Understanding Small-Cap Stocks

Before we dive into the specifics, let's clarify what we mean by small-cap stocks. Small-cap stocks are issued by companies with a market capitalization of less than $2 billion. These companies often have the potential for significant growth but come with a higher level of risk compared to larger, more established companies.

The Importance of Growth

Investing in growth stocks means focusing on companies that are expected to increase their revenue and profits at a faster rate than the market average. While these stocks may be cheaper, they come with the promise of higher returns if the company can live up to its potential.

Top US Small Caps to Watch

Now, let's take a look at some top US small caps that fit the criteria of being both cheap and growing.

1. Tesla, Inc. (TSLA)

Tesla is a prime example of a small-cap stock that has grown exponentially over the years. While it has since been reclassified as a large-cap stock, it remains a strong candidate for investors looking for cheap growth. With the electric vehicle market expected to continue expanding, Tesla is well-positioned for future growth.

2. Roku, Inc. (ROKU)

Roku is another small-cap stock that has seen remarkable growth. As the streaming industry continues to grow, Roku's position as a leading provider of streaming devices makes it an attractive investment for those looking for cheap growth stocks.

3. Beyond Meat, Inc. (BYND)

Beyond Meat has revolutionized the plant-based food industry with its plant-based meat products. As more consumers look for sustainable and healthy alternatives to traditional meat, Beyond Meat's growth prospects look promising.

4. Palantir Technologies, Inc. (PLTR)

Palantir provides data analytics software to various industries, including government, defense, and commercial sectors. With the increasing importance of data analytics in today's world, Palantir has the potential for significant growth.

5. DocuSign, Inc. (DOCU)

DocuSign is a leader in e-signature technology. As remote work becomes more prevalent, the need for digital signatures will likely increase, making DocuSign a promising investment opportunity.

Conclusion

When investing in cheap growth stocks, it's important to conduct thorough research and carefully assess the risks involved. The companies mentioned above are just a few examples of the many small-cap stocks that offer growth potential. By staying informed and selective, investors can build a diverse portfolio of cheap growth stocks to help maximize their returns.