## Small Stocks with High Potential in 2021
The stock market is a vast and ever-changing landscape, with countless opportunities for investors of all levels. While large-cap stocks tend to garner the most attention, small stocks offer their own unique set of advantages.
Small stocks, also known as small-cap stocks, are issued by companies with market capitalizations of less than $2 billion. These companies are typically younger and more agile than their larger counterparts, which can give them a competitive edge in certain markets. Small stocks also tend to be more volatile than large-cap stocks, but this volatility can also lead to greater potential rewards.
Investing in small stocks can be a great way to diversify your portfolio and potentially generate higher returns. Here are a few small stocks that we believe have the potential to perform well in 2021:
## 1. Verra Mobility Corporation (VRA)
Verra Mobility Corporation is a leading provider of smart mobility solutions. The company’s products and services help cities, municipalities, and businesses manage traffic and parking, improve road safety, and generate revenue. Verra Mobility is benefiting from the growing trend towards smart cities and connected vehicles. The company’s revenue is expected to grow at a CAGR of over 10% in the next five years.
## 2. Cerence Inc. (CRNC)
Cerence Inc. is a global leader in artificial intelligence (AI)-powered voice and natural language understanding (NLU) solutions for the automotive industry. The company’s software is used in over 300 million vehicles worldwide. Cerence is well-positioned to benefit from the growing adoption of AI in vehicles, as well as the increasing demand for voice-activated features. The company’s revenue is expected to grow at a CAGR of over 20% in the next five years.
## 3. Xometry Inc. (XMTR)
Xometry Inc. is a leading provider of on-demand manufacturing services. The company’s platform connects customers with a global network of manufacturers, enabling them to quickly and easily order custom parts and components. Xometry is benefiting from the growing trend towards outsourcing and the increasing adoption of digital manufacturing. The company’s revenue is expected to grow at a CAGR of over 25% in the next five years.
## 4. AppHarvest Inc. (APPH)
AppHarvest Inc. is a leading indoor farming company. The company’s greenhouses use controlled environment agriculture (CEA) to grow high-quality, pesticide-free produce. AppHarvest is benefiting from the growing demand for sustainable and locally sourced food. The company’s revenue is expected to grow at a CAGR of over 30% in the next five years.
## 5. Desktop Metal Inc. (DM)
Desktop Metal Inc. is a leading provider of metal 3D printing solutions. The company’s hardware and software enable manufacturers to produce parts more quickly, affordably, and with greater complexity than traditional methods. Desktop Metal is benefiting from the growing adoption of 3D printing in a variety of industries, including aerospace, automotive, and healthcare. The company’s revenue is expected to grow at a CAGR of over 40% in the next five years.
### Conclusion
Small stocks can be a great way to diversify your portfolio and potentially generate higher returns. However, it is important to remember that small stocks are also more volatile than large-cap stocks. Therefore, it is important to do your research and invest only in companies that you believe have the potential to succeed.
The five small stocks listed above are just a few examples of the many promising opportunities that are available in the market today. We encourage you to do your own research and find the stocks that best fit your investment goals and risk tolerance.