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12 Splendid Small-Cap Growth Stocks to Buy

While the novel coronavirus continues to inflict pain in the U.S., investors are looking for companies with greater earnings visibility. That's great news for portfolio managers overseeing small-cap stocks, which have suffered significant underperformance in recent years.

"We are just exiting a seven-year underperformance cycle partially driven by the popularity of mega stocks, particularly the FAANGs (Facebook, Apple, Amazon, Netflix, Google)," U.K.-based Miton U.S. Opportunities Fund portfolio manager Nick Ford recently told CNBC. "And investors have been forced into mega cap stocks because if you are benchmarked against the S&P 500 and you don't own Facebook, Apple, Netflix, etc., you are going to trail the index, and that sucks money out of the small-cap sector."

As the U.S. economy starts to recover, however, small-cap growth stocks will benefit the most. That's because they're largely being valued at or near historical lows.

Once investors come to the realization that small-cap stocks should have superior potential returns over the next two to three years, however, you'll see small-cap stocks' valuations (and, of course, their prices) rise dramatically.

Here, then, are 12 small-cap growth stocks to buy if you're constructing a diversified portfolio and need a little oomph.

Data is as of July 14.