Amid fears of an economic slowdown and stock market correction with the resurgence of COVID-19 cases, lesser-known players that possess strong momentum could be wise investment bets now. We think small-cap players Alliance Resource Partners (NASDAQ:ARLP), Caleres (NYSE:CAL), and Big 5 Sporting Goods (BGFV) are examples of names that have the potential to maintain their momentum through the remainder of 2021, dodging any short-term market fluctuations. So please read on for details.The rapid surge in COVID-19 cases across the United States, with the virus’ Delta variant mercilessly tightening its grip, is causing high volatility in the stock market. Although major U.S. benchmark indexes are hovering near their all-time highs, the Dow Jones Industrial Average and S&P 500 pulled back yesterday.
In addition to the resurgence of COVID-19 cases, inflation concerns are spooking investors. Amid this stock market volatility, the odds of overpriced large-cap stocks witnessing corrections are high. However, lesser-known small-cap stocks that have greater growth potential and gained significant momentum could continue gaining.
Under-the-radar stocks Alliance Resource Partners, L.P. (ARLP), Caleres, Inc. (CAL), and Big 5 Sporting Goods Corporation (BGFV) have generated significant momentum over the past few months. And we think that they are uniquely positioned to keep rallying through the remainder of the year. So, it could be wise to bet on these stocks now.