7 Small-Cap Value Stocks to Buy Before the Tech Bubble Bursts

Group 1: Small-Cap Value Stocks Overview - The S&P 500 is reaching new highs, but some investors are focusing on small-cap value stocks for long-term growth due to concerns over index concentration, particularly with mega-cap stocks like Nvidia [1] - Small-cap value stocks are characterized by their adaptability to changing conditions and potential for long-term growth, offering solid income and dividend opportunities [1] Group 2: H&R Block (HRB) - H&R Block is a unique fintech option among small-cap value stocks, with a mobile banking service, Spruce, contributing $26 million to its quarterly revenue alongside $99 million from tax preparation sales [2] - The company is developing an AI-powered tax assistance tool in partnership with Microsoft to enhance the tax filing experience [2] Group 3: Iridium Communications (IRDM) - Iridium's shares have seen a 30% decline since the beginning of 2024, presenting a potential entry point for investors [5] - The decline was primarily due to the termination of a joint venture with Qualcomm, which aimed to develop chips for connecting standard cell phones to Iridium's satellite network [5] - Iridium is shifting its strategy to adapt satellite protocols for compatibility with existing mobile devices, potentially broadening its market [6] Group 4: Apartment Income REIT Corp. (AIRC) - AIRC is positioned well in a high-interest-rate environment, focusing on premium properties in urban areas, leading to high occupancy rates and regular rent increases [7][8] - The company has reduced its property holdings from 300 in 2008 to 75 today, emphasizing quality and operational efficiency [8] - AIRC offers a forward yield of 5.6%, providing diversification among small-cap value stocks [8] Group 5: Evergy (EVRG) - Evergy is a small-cap value stock that combines utility stability with sustainability growth potential, being the second-largest producer of wind energy in the U.S. [9] - The company recently increased its quarterly dividend by 5% to $0.6425 per share, offering a forward yield of 5% [9] - Evergy has faced challenges in the utility sector but is well-positioned for recovery if anticipated Federal Reserve rate cuts occur [10] Group 6: Perimeter Solutions (PRM) - Perimeter Solutions specializes in firefighting equipment and has reported a CAGR of 7.2% since 2010, with revenue expected to reach $100.2 billion by 2027 [11] - The company has a price-to-book ratio of 0.80, indicating it may be undervalued despite its growth [11] - Perimeter's shares surged almost 40% year-to-date, supported by an aggressive buyback program [11] Group 7: Aspen Aerogels (ASPN) - Aspen Aerogels focuses on aerogel-based insulation materials for high-temperature environments, positioning itself as a key player in sustainability efforts [12] - The company reported a significant reduction in losses, with a $0.5 million loss compared to $9.6 million the previous year, and has seen revenue growth over four consecutive quarters [13] - Anticipation for increased investor interest in 2024 is growing as Aspen works to improve profit margins [13] Group 8: Hanesbrands (HBI) - Hanesbrands holds a 60% market share in the innerwear clothing sector but faces challenges such as supply chain disruptions [14] - The company is seeking preliminary offers for its Champion clothing line, indicating a strategic shift to focus on core innerwear products [14] - Hanesbrands appears to be implementing recommendations from Barington Capital Group to improve operations and profit margins [15]