Pocket-Sized Powerhouses: 7 Small-Cap Value Stocks Ready to Roar

Group 1: Small-Cap Value Stocks - The S&P 500 is increasingly driven by mega-cap stocks, raising concerns about index concentration and portfolio vulnerability [1] - Small-cap value stocks are seen as a better long-term growth option due to their adaptability and potential for capital preservation [1] - These stocks provide solid income and dividends, making them attractive for diversifying risks away from dominant stocks [1] Group 2: Apartment Income REIT (AIRC) - AIRC has strategically focused on high-demand multifamily properties in urban areas, leading to high occupancy rates and regular rent increases [2][3] - The company has reduced its property holdings from 300 in 2008 to 75 today, enhancing growth potential and resilience against interest rate fluctuations [3] - AIRC offers a forward yield of 4.6%, making it a strong option for diversification among small-cap value stocks [3] Group 3: Cricut (CRCT) - Cricut's revenue declined by 8% in Q1 2024, but the company benefits from higher paid subscriber rates and machine sales [5] - A special one-time dividend of $0.40 was announced, providing an immediate incentive for investors [6] - The company is expected to see a sales bump as new users replenish crafting supplies [5] Group 4: Medifast (MED) - Medifast reported $0.76 earnings per share in Q1 and has a cash reserve of $150 million with zero debt [7][8] - The company is focusing on a holistic approach to customer management, indicating a year of investment for future growth [8] - Despite a high dividend yield, long-term growth potential remains strong [8] Group 5: Connexa Sports Technologies (YYAI) - Connexa is trading at a low valuation of 0.05x sales, targeting niche sports markets with unique equipment [10] - The stock has seen a 260% increase since January due to new strategic investors, indicating strong momentum [11] - The company is well-positioned for growth as interest in outdoor sports increases [10] Group 6: Garrett Motion (GTX) - Garrett Motion trades at 7x earnings and 0.5x sales, focusing on green tech and sustainable driving solutions [12] - Despite a 6% drop in quarterly sales, the company maintains stable annual sales and healthy margins [13] - Garrett Motion is viewed as undervalued, with potential for growth as automakers adjust their EV strategies [13] Group 7: Costamare (CMRE) - Costamare trades at 0.6x book value and 6x earnings, with over 87% of its fleet booked for the year [15][16] - The company is adjusting operations by divesting smaller ships and acquiring larger vessels to enhance efficiency [15] - A total yield of 6% is offered, split between buybacks and distributions, appealing to shareholders [16] Group 8: Steelcase (SCS) - Steelcase reported a net income of $30.8 million, more than double the previous year, with steady sales around $800 million [17] - The company aims for 5-7% annual sales growth and a 5% free cash flow margin over the next five years [18] - Significant debt reduction has improved liquidity and reduced interest costs, positioning Steelcase as a top small-cap value stock [18]