Stock Picks to Buy: Small Cap Tech Ideas & Investing Strategy From RBC – Business Insider

This post was originally published on this site

  • RBC is adding tech exposure in its portfolio of its best small-cap stock ideas.
  • Tech, and smaller companies in general, have been hit hard this year as interest rates rise. 
  • RBC expects annual gains of at least 50% for most of these stocks, and says several could double. 

Maybe tech’s day in the sun is over, but plenty of people are always going to want to pick high-growth winners.

A lot of experts theorize that as interest rates rise and traders get more price-sensitive, cheaper value stocks are going to beat growth and tech stocks. But it’s hard to miss the fact that RBC’s latest “US Small Cap Growth Idea List” is heavy on tech names — and on the hit-or-miss biotech space.

The list of 24 stocks, which RBC describes as its top ideas for the quarter ahead, includes 11 companies in the technology and payments industries, plus seven more in biopharma or healthcare technology and services. It’s adding to those positions, instead of shrinking them and moving toward steadier names, and the firm says that seven stocks in the group could return 100% or more in the next year.

The new additions to the list this quarter are used car retail website CarGurus, defense contractor AeroVironment, business software maker Pegasystems, and online ad technology company Magnite.

The stocks are ranked below from lowest to highest total return RBC expects them to deliver over the next year. Those total return figures, calculated as of Tuesday’s close, include upside to target prices and (in a few cases) dividend payments.

This post was originally published on *this site*