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4 small caps with HUGE potential

The most exciting investments are the businesses with small capitalisations, but enormous potential.

One company that has grown is Altium Limited (ASX: ALU). It started off as a small company but has now grown to over $1 billion in size.

Here are four companies that have huge potential to grow significantly over the next few years:

National Veterinary Care Ltd (ASX: NVL)

National Veterinary Care is quickly ramping up the number of vet clinics in its portfolio. The veterinary sector is a huge yet fragmented market which provides many opportunities for management to find acquisition targets.

Considering Greencross Limited (ASX: GXL) is its only other listed competitor, I think National Veterinary Care is likely to achieve good growth, particularly as it’s only valued at around 25x FY17’s estimated earnings and is expected to soon pay a dividend.

Afterpay Holdings Ltd (ASX: AFY)

Afterpay is fuelling the ‘buy now, pay later’ approach favoured by millennials.

It’s growing momentum, with its management revealing another big retailer has signed up almost every quarter. For example, two of its latest customers include Wesfarmers Limited’s (ASX: WES) Officeworks and Myer Holdings Ltd (ASX: MYR).

Afterpay isn’t yet making a net profit or paying a dividend.

Fastbrick Robotics Ltd (ASX: FBR)

Fastbrick Robotics is the most speculative on this list. It is developing a robot that can do the bricklaying work of a team of labourers in a fraction of the time. This could revolutionise the construction industry and make building properties a much quicker process.

Fastbrick Robotics isn’t yet making a profit or paying a dividend.

Pureprofile Ltd (ASX: PPL)

Pureprofile is a survey & marketing company that links consumers and businesses. It seeks to learn about customers’ habits through a variety of means and then interpret that data for business management. This is important in an ever-changing consumer market.

It has a presence in Australia, Europe and North America, and is rapidly increasing its reach.

Pureprofile isn’t yet making a net profit or paying a dividend.

Foolish takeaway

I think all four of these businesses have a good chance of outperforming the market over the coming years, particularly National Vet Care and Afterpay.

If you want even more market-beating ideas then you should check out this report, prepared by our investment analysts.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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Motley Fool contributor Tristan Harrison owns shares of Altium, Greencross Limited, and NATVETCARE FPO. The Motley Fool Australia owns shares of Altium and Greencross Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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