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Small-cap stocks haven’t quite caught up to wider investor sentiment, but that trend is set to change. While large- and mega-caps like those within the S&P 500 survived and, in many cases, thrived, over the past year, small-cap indices like the S&P 600 underperformed.
While factors pushing large-cap growth over small-cap success are complex, recent developments point to an imminent sea change. Specifically, inflation indicators point to slowing trends, which could accelerate rate-cut timelines. If rate cuts happen this year, small-caps are set to boom. The “best in class” small-cap stocks are emerging from the higher interest rate regime stronger than ever, and with just a little push, these seven top small-cap stocks to buy could go stratospheric shortly.
Aehr Test Systems (AEHR)
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