In 2024, the investment landscape has shifted significantly from its previous year’s focus on large-cap stocks, drawing attention towards the burgeoning potential of small-cap companies.
This change is exemplified by the impressive performance of the Russell 2000 index, which saw an 8% increase since February 1, outpacing its large-cap counterparts.
Are Large-Cap Stocks Overvalued?
This pivot is attributed to several factors, including the overvaluation of large-cap stocks and a growing investor confidence in the economic prospects of smaller firms amid a climate of sustained growth.
Among the small-cap universe, two companies stand out for their remarkable growth potential and strategic business moves: Turtle Beach and SkyWater Technology.
Gaming Company Turtle Beach Draws Intrigue
Turtle Beach (NASDAQ: HEAR), renowned for its gaming headsets, along with a variety of other gaming peripherals, has seen its stock soar by over 70% to $17.60 per share as of April 4, with analysts projecting a target of $24 per share.
This optimism is not unfounded; Turtle Beach’s recent financials reveal a substantial profit of $8.6 million in the fourth quarter, a significant turnaround from the previous year’s $23 million net loss. This recovery was aided by a strategic reduction in expenses by 17%, despite a slight dip in revenue.
![](https://st.depositphotos.com/1034986/3383/i/600/depositphotos_33831959-stock-photo-headphones-on-notebook.jpg)
The company’s ambitious trajectory is further bolstered by its acquisition of Performance Designed Products (PDP), a specialist in gaming controllers.
This move not only diversifies Turtle Beach’s product line but also promises considerable financial synergy, with projected cost savings between $10 million to $12 million and a forecasted revenue surge to $370 million-$380 million in fiscal 2024.
The acquisition positions Turtle Beach for transformative growth, leveraging a forward price-to-earnings ratio of 24 to signal robust future performance.
Semiconductor Company on The Rise
SkyWater Technology (NASDAQ: SKYT) differentiates itself as a semiconductor foundry through its unique “technology-as-a-service” (TaaS) model, catering to sectors like aerospace, healthcare, and automotive without directly competing with industry giants like Taiwan Semiconductor.
SkyWater’s distinction is further emphasized by its role as a trusted supplier for the U.S. Department of Defense, underscored by a $190 million award from the DoD.
With a record revenue of $287 million in the last fiscal year, marking a 35% increase, SkyWater is on a positive trajectory despite a net loss of $31 million. The company’s growth is driven by its Advanced Technology Services (ATS) segment, which benefits from expanding governmental contracts, constituting 79% of its total revenue.
Anticipated to grow by 10% to 20% in 2024, ATS positions SkyWater at the forefront of semiconductor innovation.
The potential federal funding through the CHIPS and Science Act for SkyWater’s facility upgrades underscores the company’s strategic position within the semiconductor industry.
With a year-to-date stock price increase of 16% to $10.40 per share and an analyst consensus target of $15 per share, SkyWater is poised for continued investor interest.
Investment Opportunities Within The Small-Cap Market
The contrast between Turtle Beach’s consumer-facing gaming technology and SkyWater’s foundational semiconductor manufacturing highlights the diverse investment opportunities within the small-cap market.
![](https://st3.depositphotos.com/1000128/16509/i/600/depositphotos_165097626-stock-photo-cpu-processor-in-hand.jpg)
Both companies exemplify strategic adaptability and growth potential in their respective fields, offering compelling narratives for investors navigating the evolving landscape of 2024.
DISCLAIMER
You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of SmallCapStocks.com (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.
The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov; the Financial Industry Regulatory Authority (the "FINRA") at www.FINRA.org, and relevant State Securities Administrator website and the OTC Markets website at www.otcmarkets.com. The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at www.sec.gov/consumer/cyberfr.htm, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.
The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.
By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: www.SmallCapStocks.com/Disclaimer and www.SmallCapStocks.com/Privacy-Policy
By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.
![Nathan Goldstein](https://smallcapstocks.com/wp-content/uploads/2024/01/image_160-1-150x150.png)
I’m Nathan Goldstein, a writer and political analyst focused on simplifying complex social and political issues. My writing breaks down the intricacies of today’s society and politics to make them more understandable for you. I’m committed to providing clear and well-informed insights.