3 Small-Cap Stocks With Big-Cap Potential
There's no single factor that determines whether a company with a small market cap will eventually grow enough to join the ranks of the largest stocks. But there are a few inklings that investors can look for which can indicate that a stock has a lot of growth in its future. Specifically, profitable companies that are sustainably growing their revenues and extracting increasing cash flows from their investments over time are more likely to have what it takes to expand massively in the long term.
Each of the three companies I'll discuss today is competing profitably in the healthcare sector, and each is also exhibiting a robust return on invested capital (ROIC) as well as consistently rising revenues over time. In other words, these companies are effective at turning their capital into new revenue by choosing the right projects and executing them effectively in their market. There's no guarantee that these stocks will become large enough to be in the big leagues, but they all have a solid shot, and investors should take note.
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Source Fool.com
