7 Growth Stocks to Buy Now Before They Become Large Caps

7 Growth Stocks to Buy Now Before They Become Large Caps
Will Ashworth
Thu, July 28, 2022 at 3:00 PM
In this article:

CROX
+6.38%


GAMB
+0.99%


SACH
+1.40%


UMPQ
+0.46%


COLB
+1.36%


Canada's national business paper, The Globe and Mail, recently
interviewed a Toronto-based portfolio manager who seeks out smaller
growth stocks with the potential to become large caps over the long
haul. Alex Etsell invests $2.3 billion for Hillsdale Investment
Management in microcap and small-cap strategies for the firm's
clients. He defines microcaps as stocks with market capitalizations
between $100 million and $300 million, while small-caps are those
between $300 million and $4 billion.

In Etsell's case, he's investing in Toronto Stock Exchange and TSX
Venture Exchange stocks, but his philosophy can be applied to U.S.
stocks.

"We're always looking to hold high-quality names, which in this market
environment are companies that are growing and still showing
profitability and have very strong margins. These factors are
especially important in a high-inflation environment," Etsell told The
Globe and Mail on Jul. 23.

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Therefore, I have selected four small-cap stocks and three microcaps
for this article using Estell's size definitions. These businesses are
projected to grow revenues by at least 30% annually over the next two
years and are profitable with 10% net margins.

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Some of these stocks could become large-cap stocks in the next few years:

Ticker

Company

Price

CROX

Crocs, Inc.

$61.90

COLB

Columbia Banking System, Inc.

$29.61

CDEV

Centennial Resource Development, Inc.

$6.45

SAFE

Safehold Inc.

$42.03

SRTS

Sensus Healthcare, Inc.

$10.43

GAMB

Gambling.com Group Limited

$7.45

SACH

Sachem Capital Corp.

$4.79
https://finance.yahoo.com/news/7-growth-stocks-buy-now-220035717.html