3 Small Stocks With Big Upside Potential

Despite record-high inflation, aggressive policy tightening from the Federal Reserve, and rising fears of a recession, Wall Street analysts are holding onto small-cap stocks ARC Document Solutions (ARC), Asertio Holdings (ASRT), and Centra Gold (CGAU). Looks like a good edge. So, these stocks can be good additions to your watchlist. read on….

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The S&P 500 is down 17.7% year-over-year, while the Russell 2000 Small-Cap Index is down 19.6%. It has been a rough ride for equities this year, with benchmark indices buckling on concerns over rising inflation and the Fed’s efforts to control it.

Investors increasingly fear that the central bank’s aggressive policy to overcome multi-decade high inflation will push the economy into recession. Worse-than-expected inflation data could force the Fed to hike rates, which could put further pressure on the stock market in the coming months.

The current market backdrop highlights the importance of investing in fundamentally strong stocks with strong upside potential. While small-cap stocks generally don’t perform well amid economic contractions, Wall Street analysts recommend ARC Document Solutions, Inc. ,arch), Asertio Holdings, Inc. ,ASRT), and Centra Gold Inc. ,CGAU) to grow in the coming months. So, it might be worth adding these stocks to your watchlist.

ARC Document Solutions, Inc. ,arch,

With a market capitalization of $113.81 million, ARC provides digital printing and document-related services to customers of all industries. It resales printing, imaging and related equipment primarily to architectural, engineering and construction firms and provides ancillary services.

The company serves local restaurant owners, construction subcontractors, international retailers, regional energy companies, school districts, retail, technology, energy, education, hospitality and public utilities.

For the first quarter ended March 31, 2022, ARC’s net sales grew 12.5% ​​year-on-year to $69.49 million. Its income from operations increased 78.1% from the year-ago period to $3.06 million. ARC’s net income came in at $1.97 million, representing a 149.9% year-over-year improvement, while its adjusted EPS rose 150% year-over-year to $0.05.

common agreement eps The $0.26 estimate for its fiscal year 2022 ending December 31, 2022, represents an 18.2% year-over-year improvement. Analysts expect the company’s revenue to reach $286.90 million in the same fiscal year, representing a 5.4% increase from the prior-year period.

The stock is up 28.3% over the past year to close the previous trading session at $2.63. Analysts expect the stock to reach $3.50 in the coming months, which is a . represents 19.4% upside potential,

of ARC power rating Reflect on this promising outlook. The stock has an overall rating of A, which equates to a strong buy in our proprietary rating system. The POWR rating is calculated by taking 118 different factors, each factor weighted to an optimum degree.

It also has an A grade for value and quality and a B for development and spirit. It’s B-rated. Ranked #2 out of 43 stocks in Outsourcing – Professional Services industry. click here To see additional ratings of ARC for speed and stability.

Asertio Holdings, Inc. ,ASRT,

ASRT is a specialty pharmaceutical company that provides drugs in a variety of treatment areas, including neurology, pain, and inflammation. The company offers Indocin, an oral solution for the treatment of moderate to severe rheumatoid arthritis, and Cambia, a non-steroidal anti-inflammatory drug (NSAID). Its market cap is $159.02 million.

On March 31, 2022, ASRT partnered with BlinkRx to support healthcare professionals and patients treating Otrexup with a unique access solution. “It builds on our existing pharmacy hub capabilities with a new direct-to-patient model for those who prefer a convenient digital option,” said Dan Peisert, ASRT President and CEO.

For the fiscal first quarter ended March 31, 2022, ASRT’s net revenue increased 36.1% year-over-year to $36.54 million. Its adjusted EBITDA rose 51.8% from a year-ago value to $23.86 million, while its adjusted earnings rose 70.3% year-over-year to $17.53 million. The company’s adjusted EPS rose 40.7% to $0.38 from its year-ago value.

For the quarter ended June 30, 2022, ASRT’s revenue is expected to increase 25.2% year-over-year to $31.78 million. The Street expects its EPS for the same period to be $0.08. ASRT closed the previous trading session at $3.50 with a gain of 243.1% over the past nine months. Analysts expect the stock to reach $6, which is a . represents 71.4% Potential Upside,

ASRT’s POWR rating reflects these solid prospects. The stock has an overall rating of A, which equates to a strong buy in our proprietary rating system.

It also has an A grade for Growth, Value, Sentiment and Quality. inside Medicine – Pharmaceuticals Industry, it is ranked #8 out of 169 stocks. To see ASRT’s other ratings for speed and stability, click here,

Centra Gold Inc. ,CGAU,

Headquartered in Toronto, Canada, CGAU is a gold mining company focused on operating, developing, exploring and acquiring gold assets in North America, Turkey and other markets around the world. The company explores gold, copper and molybdenum deposits. It operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Oksut Mine in Turkey. Its market cap is $1.79 billion.

On February 28, 2022, CGAU announced the completion of its previously announced acquisition of Gemfield Resources LLC, owner of the Goldfield District project, from Waterton, Nevada Splitter, LLC. This acquisition is expected to add to the high quality development projects and expand CGAU’s footprint in North America.

CGAU’s revenue increased 30.5% year-over-year to $295.22 million. The Company’s adjusted net income from continuing operations increased 100% year-over-year to $56.40 million. In addition, its adjusted EPS from continuing operations came in at $0.19, representing an increase of 90% year-over-year. In addition, its earnings from mining operations increased 61% year-over-year to $113.50 million.

Analysts expect CGAU’s EPS to grow 12.8% year-on-year to $0.71 for FY22. Its revenue for the current year is expected to grow 11.9% year-over-year to $1.01 billion. Over the past three months, the stock has fallen 33.2% to close the previous trading session at $6. However, analysts expect the stock to reach $10.37, which is a . represents 72.8% Potential Upside,

CGAU has an overall B rating, which is equivalent to Buy in our POWR rating system. It has an A grade for quality and a B for growth and value. It ranks first among 33 stocks miners – gold industry. click here To see CGAU’s other ratings for speed, stability and sentiment.

Shares of ARC were trading at $2.68 per share, up $0.05 (+1.90%) on Wednesday morning. Year-to-date, the ARC is down -21.19%, while the benchmark S&P 500 index has gained -16.11% during the same period.

About the Author: Shweta Kumari

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Shweta’s keen interest in financial research and quantitative analysis inspired her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.


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