3 small-cap stocks to watch out for in March

Small cap

The recent period of panic selling is rightfully every long-term investor’s dream. This is because now they can buy all those stocks that were priced high previously but now have come down to a reasonable price. It is expected that small-cap stocks that are under $2 billion value are much attractive for the investors as they respond to market changes faster than the ones with a value of over $2 billion.  

The three small-cap stocks that look promising at this hour of uncertainty for the month of march- 

AeroVironment (NASDAQ: AVAV)

AeroVironment is a defense drone supplier. The portable, unmanned drones which soldiers carry in their backpacks are supplied by them, but at this very moment, they fear that they might just lose market share. The Pentagon is planning a second contract for aerial missile system that would supplant AeroVironment’s drones. While this looks alarming, the reason why we put in this at the top of the list of stocks to watch out for is because of the rise of the military budget. The budget allocation for unmanned vessels and carriers has increased which hint at the fact that though the company can lose out on a certain percentage of shares, the value will increase and hence the prices for their stocks will rise subsequently. Due to their reliable products, they will be able to renew contracts and achieve 30% annual growth for sure in the next 5 years.

American Outdoor Brands (NASDAQ: AOBC)

American Outdoor Brand is a grand pick because it is one of the biggest gunmakers in the country and the demand for gun sales is on a high. The company is also expected to split itself into two- leading to a stand-alone company for the outdoor gear business. While the firearm industry is worth $4 billion, the outdoor gear and accessories business is worth a staggering $30 billion. Analysts expect a 15% growth every year based on the current performance of the stock in the market.

Plug Power (NASDAQ: PLUG)

This stock is regarded as the riskiest among the three that have been mentioned in this post. It is risky because of the fact that the history of this stock’s performance doesn’t impart a lot of confidence. However, the list of anchor customers for the stock is increasing which is positive news in itself. At the beginning of this year, they signed a $50 million contract with a client and they have a target to add four to five such major clients by the year 2024. Estimations show that the stocks will grow its earnings 25% every year and that is reason enough for the company to get listed in our list of top 3 small-cap stocks for March.