3 Top Small-Cap Stocks to Buy in August
The U.S. economy is still reeling from COVID-19. Following a deep 30%-plus plunge in March, the stock market has rallied all the way back to where it started 2020. It appears to be woefully disconnected from reality. Now couldn't possibly be the time to invest in small-cap businesses, right?
Contrary to what our gut often tells us, history says the time to invest in small-cap stocks (usually defined as any business with a market cap of less than $2 billion) is during periods of peak uncertainty. For investors looking to invest in fast-growing and disruptive companies for the long term (at least a few years or more), the timing need not be perfect. The three that top my list for the month of August are REPAY Holdings (NASDAQ: RPAY), Ontrak (NASDAQ: OTRK), and Limelight Networks (NASDAQ: LLNW).
E-commerce and digital payment methods are rising thanks to a massive migration to the internet. But while digital payments represent a big growth opportunity in the next decade, consumers use a card for about two-thirds of transactions each year.
Source Fool.com
