With the Trump win there has been a huge pouring of money into the many small cap stocks available on the market. There’s a host of them to choose from, and they are more “risky” than your power blue chips, but if you want to really get ahead in 2017 then you need to at least consider these potential top small caps for 2017.
1- Harmonic (HLIT)
Harmonic is the the video and audio business. They design, manufacture and sell video system solutions and products. Harmonic is riding the wave of increased use of video streaming in today’s world by helping companies with their content.
The potential is there although the company is struggling to be profitable at this point in their business cycle. Still, they are expected to increase their growth rate in profits almost 10 fold. If that does transpire in 2017 then you’ll likely do well in this stock. This stock looks like a strong tech pick amongst its peers in the small caps sector.
2- Cliff Natural Resources (CLF)
Cliffs Natural Resources is in mining and natural resources. They supply iron ore pellets to north American steel companies. It operates in Michigan and Minnesota. Looking at the stock you’ll see that 2016 was a close touch with bankruptcy fears, and although those fears has mostly disappeared they’re always risk behind a stock like this.
The good news is that it’s one of those perfect fits for a Trump 2017 with the new Predict-elect promising to ramp up spending on US infrastructure, fixing roads and bridges. These are things that will naturally need help from the steel companies. It’s also very possible that Trumps new administration will have easier regulations on US companies like Cliffs. People are getting ahead of looser regulation with strong bets on small caps like CLF.
3- Kratos Defense & Security (KTOS)
Kratos Defense & Security provides tech products and solutions for an ever changing world. With their focus being on US national security. It’s hard to argue with the idea that Trump will do what he can to keep America safe when it comes to cybersecurity, and Kratos will likely be a part of it.
KTOS also works with private companies for cybersecurity. That’s not all they do though, they also have their hands in drones security. Think mixing drones with security and you have a very futuristic look on security today with Kratos. I’d expect to see more of this small company in 2017.