Small-Cap Sultans: 3 Stocks Ready to Claim Their Thrones in the Market

Group 1: Small-Cap Stocks Overview - Small-cap stocks are gaining investor attention due to more attractive valuations compared to large-cap peers, presenting opportunities for substantial returns [1] - The previous year was dominated by the "Magnificent Seven," which drove nearly all gains in the S&P 500 and Nasdaq indices [1] - Small-cap stocks are perceived as undervalued and may rebound from underperformance, while larger stocks are seen as overvalued [1] Group 2: LivePerson (LPSN) - LivePerson provides AI-based messaging solutions for businesses and is a leader in AI-driven customer engagement [2] - The company reported total revenue of $85.1 million for Q1 2024, a 20.9% decrease from the previous year, but exceeded guidance [2] - Adjusted EBITDA improved to $0.5 million from a loss of $1.3 million in Q1 2023, although net loss widened to $35.6 million from $17.4 million [2][3] Group 3: Enphase Energy (ENPH) - Enphase Energy designs and manufactures software-driven home energy solutions, including solar generation and energy storage [5] - The company reported Q1 2024 revenue of $263.3 million, down from $302.6 million in the previous quarter, with a GAAP net loss of $16.1 million [5] - The outlook for Q2 2024 is optimistic, with expected revenue between $290 million and $330 million and projected gross margins of 42-47% [5][6] Group 4: Digital Turbine (APPS) - Digital Turbine offers a platform for mobile carriers and device OEMs to simplify app discovery, benefiting from the growth of mobile devices [7] - The company achieved Q4 2024 revenue of $112.2 million, a 20% decline from the previous year, with a significant net loss of $236.5 million due to a goodwill impairment charge [7] - For fiscal year 2025, Digital Turbine expects revenue between $540 million and $560 million, with non-GAAP adjusted EBITDA projected at $85 million to $95 million [7][8]