Small caps are always an interesting investment option. So, why not give these actions a chance in the first month of the year? That's why leading market analysts are updating their monthly small-cap portfolios and bringing the market the best stocks to buy in March See more details now
What is a Small Cap?
First, you may be wondering what exactly a small cap is. If you are a new investor, our investor guide is especially interested in you.
Small caps (as the term is used in English) represent shares of small companies, i.e. the smallest companies on the stock exchange. Thus, companies with market capitalization between $300 million and $2 billion fall under this definition.
However, even if a company has a low market capitalization, that is not necessarily a bad thing. After all, these companies have the greatest potential for growth and have even been on the market for a very short time. While $2 billion may seem like a fortune, that number is nothing more than "change" when compared to the market capitalization of capital giants like Google and Amazon.
As a result, these stocks have higher long-term growth expectations, even if the current situation puts these assets in jeopardy.
What are the expectations of the analysts at Órama Investimentos?
As a result, Órama Investimentos has updated its recommended small cap portfolio for the month of March.
This month marked the entry of Ânima Educação (ANIM3) into the portfolio, replacing the role of IMC (MEAL3). According to brokers, the company's share in the education sector now looks more attractive after falling almost 20% in February.
“The company is being managed very well and the numbers should improve soon as funding returns to pre-pandemic levels.”explained Orama in a statement.
Thus, the broker recalls that not long ago Ânima made one of the largest acquisitions in its history when it doubled in size with the purchase of Laureate.
With a target price of R$11.23, Órama estimates that Anima's share price is likely to rise by more than 50%.
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