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3 Small-Cap Stocks on the Way to Bigger and Better Days

In late 2023, many analysts called for 2024 to be the year of a small-cap stock renaissance. These stocks were battered as the Federal Reserve aggressively raised interest rates. Many of these companies rely on borrowing to fund their growth and struggled as the cost of borrowing increased. 

The Russell 2000 index, which tracks many small-cap stocks, is up 20% in 2024. But not all small-cap stocks participated in that rally. However, with the Federal Reserve suggesting that its 50-basis point cut in September was the first in a series of future rate cuts, borrowing conditions should improve for small-cap stocks, particularly those that already show solid fundamentals like the stocks mentioned here.  

Analysts are projecting earnings growth of at least 10% in the next 12 months for each of these companies. That growth and other catalysts make these stocks strong candidates to outperform the market in the next 12 months.  

Star Bulk Carriers Will Benefit From China's Stimulus Measures 

Dry bulk carrier stocks aren't the most exciting. But Star Bulk Carriers Corp. (NASDAQ: SBLK) is one to watch heading into 2025. It's the largest U.S.-listed dry bulk company with a fleet of 160 vessels. The company also has a strong balance sheet and has been paying down debt at a rate of about $250 million per year, a pace ...