Some of the best-performing companies of the bull market have grown so big that their growth has understandably started to slow. While the big tech stocks and S&P 500 large-cap stocks get most of the headlines on Wall Street, there are plenty of small-cap stocks that are flying under the radar. Bank of America’s Endeavor List is a selection of high-value stocks with market caps under $7 billion that have exposure to many of the firm’s favorite long-term growth trends. Here are seven small-cap stocks that could generate big returns.
Air Lease Corp. (ticker: AL)
Air Lease leases a fleet of 271 owned and 49 managed aircraft around the world. In 2018, Air Lease has been focusing on reducing its debt load and reinvesting its tax cut savings. As of the end of June, Air Lease had committed to acquiring another 391 new aircraft for a price of around $28 billion. Analyst Kristine Liwag says Air Lease is currently in a period of rapid growth and high earnings visibility, which should produce upside for investors. Bank of America has a “buy” rating and $57 price target for AL stock.
Boyd Gaming Corp. (BYD)
Business has been booming for regional U.S. casino operator Boyd Gaming. It may not have any properties on the popular Las Vegas Strip, but Boyd owns 28 gaming facilities in Nevada and nine other states. Last month, Boyd completed a deal to acquire four additional casinos from Pinnacle Entertainment Group. Analyst Shaun Kelley says the combination of new property additions, improving margins, solid revenue growth and multiple expansion is a winning recipe for investors. Bank of America has a “buy” rating and $37 price target for BYD stock.
Ciena Corp. (CIEN)
Ciena is a vendor for ethernet switching and high-capacity optical transport equipment. The company specializes in modernizing and updating legacy communications networks. Analyst Tal Liani says 100G optical equipment spending is on the rise, and CIEN stock has an attractive valuation given the potential upside to the company’s data center business. In addition, Ciena is gaining market share from competitors, and its gross margin increased by 2.7 percent sequentially in the third quarter. Bank of America has…
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