Small-cap stocks with solid financials are expected to thrive as the economic recovery gains pace. So, we think it is wise now to bet on small-cap companies Full House Resorts (NASDAQ:FLL) and U.S. Global Investors (GROW) that possess healthy growth potential. Read on.As the United States continues to recover from the COVID-19 pandemic-led disruptions at a faster-than-expected pace, small-cap stocks have been making a solid comeback. Also, small- and medium-sized businesses (SMBs) have been getting substantial support from the government in the form of tax deferrals and subsidies.
The $1.9 trillion pandemic rescue package passed by the Biden administration is expected to boost consumer spending, which should drive top-line growth for these companies. Furthermore, consistent innovations have allowed small-cap companies to quickly square up to the big names in their respective industries in terms of providing quality products and services.
Investors growing interest in small-cap stocks is evident in the SPDR S&P 600 Small Cap ETF’s (SLY) 41.6% gains over the past six months, outpacing the 20% returns of the large-cap focused SPDR S&P 500 ETF Trust (SPY). So, for investors who want to invest in stocks with robust growth potential and can tolerate a degree of market volatility, we think small-cap growth stocks are an ideal investment now. Full House Resorts, Inc. (FLL) and U.S. Global Investors, Inc. (GROW) possess solid growth attributes and are currently trading under $10.