Q4 Stock Predictions: 3 Micro-Cap Stocks Ready to Skyrocket Into 2024
Jeremy Siegel’s prediction that the Federal Reserve will not raise interest rates in November, despite the pressure from higher bond yields on the equities market, holds significant implications for microcap stocks. This has led to the emergence of micro-cap stocks to buy.
The absence of interest rate hikes keeps borrowing costs low, facilitating capital access for these small companies to invest in growth. Moreover, rising bond yields may steer income-seeking investors toward dividend-paying stocks, including microcaps, potentially driving up their prices.
A robust economy further complements the growth potential of microcap stocks, as increased consumer spending and business activity can boost these companies’ revenues and stock performance.
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Thus, these three offer great upside potential for investors to capitalize on.
Ceragon Networks (CRNT)
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Ceragon Networks (NASDAQ:CRNT) is a network equipment company focused on mobile network solutions for customers. CNN Money has 2 analysts predicting a 1-year price range on IBEX to be between $5.25 and $6.00, with a median of $5.63.
The network as a service (NaaS) industry is expected to reach a valuation of $155.1 billion by 2030 from a 35.3% CAGR. North America is the largest market for NaaS because of technological advancements in data centers, such as cloud-based systems such as AWS, and R&D in network expansion technology bolstering industry growth.
CRNT shows healthy financials, as $86.1 million in Q2 2023 revenue grew at a 21.9% 1-year CAGR. The company demonstrates improved profitability through its 2.42% gross profit margin growing 212.5% YoY and $3.1 million in cash from operations growing 200% YoY.
Cergaon has forged multiple partnerships that expand its global customer base, positioning itself for future growth. Ceragon has signed a multi-year contract with African telecommunication company Paratus to provide communication services to the oil and gas industry in Namibia and Mozambique. The contract allows Ceragon to expand its customer base with multiple Oil and Gas Companies. Ceragon has also entered a partnership to expand 4G networks to rural areas and implement 5G networks with Indian telecommunication company Airtel, giving itself direct access to the second-highest-growing NaaS market.
With a market cap of $172 million, Ceragon is a micro-cap stock that is primed for a breakout in 2024 because of its healthy financials, partnerships that expand its global customer base, and more mentioned above. This makes it one of those micro-cap stocks to buy.
MediWound (MDWD)
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MediWound (NASDAQ:MDWD) specializes in developing next-generation enzymatic therapeutics, focusing on non-surgical tissue repair. Some notable products include NexoBrid, an orphan biologic drug for early non-surgical eschar removal of deep-partial and full-thickness thermal burns, EscharEx, similar to NexoBrid but is more specialized in hard-to-heal wounds, and MW005, a work-in-progress biological drug that addresses the treatment needs of low-risk Basal Cell Carcinoma skin cancer.
MDWD is down 19.94% YTD. The global biopharmaceuticals market was valued at $333.09 billion in 2022 and is forecasted to grow to $856.1 billion by 2030 at a 12.5% CAGR from 2022 to 2030. MediWound reported a PYQ2 revenue of $4.77 million that grew 2.25% YoY. All in all, it’s one of those micro-cap stocks to buy.
Last week, MediWound secured $ 6.5 million in funding from the United States Department of Defense to advance the development of NexoBrid for the U.S. Army through the MTEC Research Project Award. MediWound was chosen for this funding due to the great presence NexoBrid can have on the field because of the innovation of a non-surgical solution for treating severe burn injuries in pre-hospital settings. The funding reinforces the product’s standing as “the non-surgical, temperature stable, user-friendly, and highly effective solution for eschar removal,” said Ofer Gonen, CEO of MediWound.
Additionally, in July of this year, MediWound announced positive results of its phase I/II study of its in-development product MW005. The study concluded that the product is safe and well-tolerated, and eleven out of the fifteen patients achieved complete clearance of their BCCs. This signifies the great advancement in BCC treatment, possibly providing more affordable and less disfiguring treatment, and improving patient experiences and outcomes.
Yahoo Finance reports 5 analysts, all 5 giving the stock a buy or strong buy rating. The mean 1-year price target is $28.00, from $25.00 to $36.00.
MediWound has seen great development with its products in the past year. With MDWD down 19.94% YTD, it sits at an attractive entry point for investors.
Travelzoo (TZOO)
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Travelzoo (NASDAQ:TZOO) is an Internet media company that provides travel, entertainment, and local deals. Travelzoo has over 30 million members, including 8 million app users, and TZOOstock is up 25.11% YTD.
Yahoo! Finance analysts report a huge upside for the company, with 3 analysts with a mean 1-year price target of $13.33, ranging from $10.00 to $17.00. Quant, Wall Street, and SA Analysts all give TZOO a buy or strong buy rating.
Travelzoo reported solid financials, with revenue of $21.1 million missing expectations by $0.09 million, EPS of $0.17 missing expectations by $0.02, and net income of $2.63 million growing 155.45% YoY. The company still expects its 19.2% YoY growth in revenue and 84% YoY growth in operating profit to continue into the next year. All in all, it’s one of those micro-cap stocks to buy.
Travelzoo has been innovating with a metaverse initiative, offering customers a virtual travel experience. This push towards innovation is important for the long-term outlook of the company and is an important detail that will allow Travelzoo in the industry. The company also highlights that the majority of Travelzoo members (87%) are open to new destinations and travel ideas, feeding both its innovative mindset and its ability to onboard new users.
Travelzoo’s innovative mindset and strategic shift to digital travel means the company is poised to benefit from AI demand, and shows that there is a bright future for this small-cap company that you do not want to miss.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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