7 small cap stocks that could offer good returns in next year
With small cap stocks outperforming both large caps and the broader markets this year, investors have been taking a closer look at small cap companies.
These stocks generally trade at a steep discount to larger peers, have greater growth potential and are more risky.
Small cap stocks that also have the advantage of being in the technology sector could be particularly attractive. In this sector, small cap stocks often trade at a significant discount to larger peers, and tend to outperform as the market starts to pivot back to growth.
Here are seven small cap tech stocks that could deliver attractive returns in 2016:
Adesto Technologies
Adesto Technologies is a company that produces application-specific integrated circuits (ASICs). Adesto’s devices are used to enable power efficiency in an array of applications, including advanced metering infrastructure, home automation, industrial controls and portable medical devices.
The company’s products support communications protocols for Wi-Fi, ZigBee, Z-Wave, Thread, Bluetooth, NFC, and RFID.
Adesto’s products can be found in a variety of devices, including smart energy meters, lighting controls, home automation systems, wireless sensors, wearable devices and industrial controls.
Adesto’s products are sold directly to OEMs and through distribution partners.
The company leases 17,500-square-foot facility in Portland, Oregon.
Adesto has 112 full-time employees.
The company has been profitable in every year of operations, including through the Great Recession, and generated $19.6 million in cash from operations during fiscal 2015.
Brooks Automation
Brooks Automation is a maker of automated equipment for semiconductor manufacturers. Brooks’s equipment is used by semiconductor manufacturers to automate the testing of integrated circuits, which helps improve chip quality. The company’s products also simplify the test process and reduce the time required to test chips.
Brooks’s products are used by virtually every major semiconductor manufacturer in the world.
Brooks’s products are also used in applications outside of semiconductors. The company’s products are used in other industries, including solar, LED, data storage, medical, automotive and aerospace.
Brooks leases 42,000-square-foot facility in North Andover, Massachusetts.
Brooks has 1,200 full-time and 1,000 part-time employees.
Brooks generated $224.5 million in cash from operations during fiscal 2015.
CyberArk Software
CyberArk Software is a maker of security software. CyberArk’s products are used by banks, government agencies, healthcare and financial companies to secure their networks and protect sensitive information. The company’s products are also used by technology companies to secure their internal networks.
CyberArk’s software helps organizations comply with regulations, including SOX, PCI-DSS, HIPAA and GDPR.
CyberArk’s products protect more than 800 enterprise customers worldwide.
CyberArk’s products are used by more than 9,000 organizations globally.
CyberArk’s products are distributed through the company’s direct sales force.
CyberArk’s products are used by more than 10 million users.
CyberArk leases 35,000-square-foot facility in the Tel Aviv metropolitan area.
CyberArk has 1,200 full-time employees.
CyberArk generated $121.6 million in cash from operations during
