The Best Small-Cap Stocks to Buy

Here at Wealth Daily, our motto is that “fortune favors the bold.” And when it comes to investing, there’s not a much bolder move than backing a small company with a big idea. But when it comes to rewards, there are none bigger than the ones you get for betting on the right little company and the right big idea. It’s what gets people into venture capital. It’s created a whole market where private companies seek investments from retail investors. And it’s why small-cap stocks have such a big following despite their seemingly minuscule market caps. So today, in case you’re feeling bold, I’m going to share some of the best small-cap stocks to buy.

And, if they’re as successful as they look like they could be, fortune might just decide to favor your boldness with some big-time profits. Now, let’s take a look at the best small-cap stocks on the market. And when we’re done, I’ll give you a special tip on where I find many of the small-cap stocks like these that I keep in my own portfolio.

Best Small-Cap Stocks: Scoring All “A’s”

First up on my list of the best small-cap stocks to buy is a company so small you’ve probably never heard of it. But if you had, then you would know that it’s a leader in the new market for augmented reality software solutions. And while that market is still very small, thanks to the recent rapid growth of AI, it’s moving by leaps and bounds to become a global phenomenon.

The company I’m talking about is ARway Corporation (CSE: ARWY; OTC: ARWYF), based in Toronto, Canada. ARway is a spinoff of a larger company that’s more focused on the AI side of the business. The spinoff got all the augmented reality segments to further develop. And develop them it has. ARway’s software is so good that it’ll be integrated with Apple’s new AI-powered smartglasses, the Vision Pro. The software provides enhanced AR navigation solutions. And if you’re unsure of what that means, it’s a map projected onto the ground in front of you on the screens of your glasses.

It’s pretty cool. And it’s incredibly convenient for people working in massive distribution centers or logistics facilities, people traveling in unfamiliar locations, and people visiting conventions and conferences with maze-like exhibit halls. Like when visitors to the Comex 2024 Global Technology Show in Oman used it to help guide them around the massive convention.

The company has signed numerous contracts with national governments and private companies alike to provide AR navigation solutions. Yet its market cap is still a paltry C$2.6 million. That’s because nobody has really heard of the company. But that’s all very likely to change as smart glasses gain more popularity and ARway’s software is featured in more and more of them. And it’s that massive potential to really ramp up that makes ARway Corporation one of the best small-cap stocks to buy.

Best Small-Cap Stocks: Natural Medicine

Next up on my list of the best small-cap stocks to buy is a company that’s both researching and producing the ingredients for the next generation of medical treatment: psychedelics. Now, I know you’ve heard a lot of hype about psychedelics like psilocybin. And I know that the profits haven’t really materialized the way many thought they would. But this is a real market, and it’s growing despite investors losing interest in it for the time being. That’s why Optimi Health (CSE: OPTI; OTC: OPTHF) is one of the best small-cap stocks to buy.

It’s a tiny C$30 million-market-cap company that’s quickly setting the international standards for natural psilocybin. You see, many of the big-name companies are working with synthetic versions of these plant-based molecules. They’re doing it because the regulatory agencies have more experience with synthetics in pharmaceuticals. So they’re more likely to get quick approval. But we saw this play out with cannabis. People seeking natural medicines don’t want synthetic versions of them. That’s not natural. And it’s why medicines derived from synthetic cannabinoids weren’t popular but medical cannabis is a multibillion-dollar business.

And Optimi feels the same way, so it’s focused on creating the most state-of-the-art nursery and growth facility I’ve ever seen. And I’ve traveled the world checking out cannabis companies, so I’ve seen quite a few. But this one is special. It’s modeled after the facility that set the standard for cannabis production in Canada. And it’s how this company can continuously churn out the most highly sought-after natural psychedelics in the world. It’s GMP certified, which means its facility has been deemed safe for producing medicines, the same as any pharmaceutical lab would have to get. It’s got international contracts to supply researchers and even some of its competitors with psychedelics. And it’s got its own research and development department working on its own therapies and treatments. It’s an impressive operation only a few people know about. And the potential that all gives it makes Optimi Health one of the best small-cap stocks to buy.

Best Small-Cap Stocks: Crypto Comeback

Third on my list of the best small-cap stocks to buy is a company that went through a rough patch with the rest of its market but made lemonade and is coming out even stronger than before. It’s WonderFi Technologies Inc. (TSX: WNDR / OTC: WONDF), a cryptocurrency and digital asset trading and investing platform based in Canada. After weathering the storm that came at the entire crypto market a few years ago, WonderFi used its clean balance sheet and access to capital to acquire many of its former competitors. Companies that hadn’t been financially strong enough to keep the lights on were offering up their assets for pennies on the dollar. And WonderFi capitalized.

After buying Coinsquare, CoinSmart, Bitvo, Bitstamp’s Canadian assets, SmartPay, and Coinberry, it’s now the biggest crypto platform in Canada with nearly 2 million users across its various brands. It’s also grown its assets under custody to over $1.5 billion. And it’s also branching out into Asia as it aims to grow its global presence. The company only trades at a $120 million market cap. But it’s bringing in around $45 million a year in revenue from its platforms. That’s a disconnect that likely won’t last. And that’s what makes WonderFi one of the best small-cap stocks to buy.

Best Small-Cap Stocks: Straight to the Source

Now, it’s time for that special treat. I’m done with my list of the best small-cap stocks to buy. And now I’m going to let you in on my secret small-cap stomping grounds. You see, as well as boasting a career on Wall Street, I also boast a network of colleagues that are tuned into every market you can think of. And one of them, Alex Koyfman, shares my passion for small investments with HUGE potential. He and I share ideas with each other. And he’s led me to some really impressive gains on small companies that made their big idea a profitable reality.

Right now Alex and I can’t stop talking about one of the most recent companies he uncovered. It’s a small company that’s got the only license to develop the kind of fuel this new generation of nuclear reactors you keep hearing about runs on. This company has a long and storied history behind it, but as the U.S. shuttered its nuclear industry, investors forgot all about it. But now that we’re racing to decarbonize energy… and now that small modular nuclear reactor technology is in civilian hands (after safely powering Navy vessels for several decades, I might add)… this company is back on the map. Because not only does it have the experience and the license, but it’s also already got the equipment set up and is ready to start rolling out this new fuel developers are desperate to get their hands on.

It’s such an incredible combination of trends and markets and profits that Alex created a special report to introduce it to the members of his own investing community. And he gave me permission to share it with you today. But you’ll need to act quickly because shares are picking up steam with every ban on Russian uranium, every failure of the power grid, and every government grant that hits headlines. This might just be the very best small-cap stock to buy now.

The Bottom Line

The bottom line here is that there is a lot of opportunity to be had by investing in the best small-cap stocks. But there’s also a lot of risk. Many of these companies don’t have operating histories you can rely on to give you a sense of their future. Some of them are targeting industries that barely exist. Others are tiny fish in a massive ocean, swimming with predators much larger than themselves. But when you pick the right little company with the right big idea, the profits can be literally life-changing.

I’ve researched all of the companies we talked about today and I’m confident that they’ve got a much better chance than your average small-cap stock. It’s why I’m confident enough to call them some of the best small-cap stocks to buy. But if you’re looking for more great small-cap stocks to buy, or just looking for more great investments in general, keep coming back to Wealth Daily every day to see what’s moving the markets and what’s going to be moving them in the future.

And check out the information Alex let me share. He, too, knows the best small-cap stocks when he sees them.

To your wealth,

Jason Williams

@TheReal_JayDubs

Angel Research on Youtube

After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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