Here are 3 small-cap shares that are still flying under the radar of most investors

These small-cap shares have the potential to deliver strong gains over the next few years.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the benefits of investing in small-cap shares is the fact that many of them are overlooked by institutional and professional investors due to size or liquidity restrictions.

Fortunately, retail investors are not bound by these same restrictions and this provides them with a great opportunity to find undervalued and under-followed shares.

With that in mind, here are three small-cap shares that might be flying under your investment radar:

Pioneer Credit Ltd (ASX: PNC)

Pioneer Credit is a financial services company that specialises in purchasing and servicing retail debt portfolio's mainly from Australia's major banks. The $104 million company recently delivered another record interim result that showed a 17% increase in earnings per share.  The outlook for Pioneer Credit remains strong and management expects to deliver full year earnings of at least $10.5 million. This means the shares are currently trading on a very undemanding price-to-earnings (P/E) ratio of less than 10, and also offering a attractive dividend yield of nearly 5%.

3P Learning Ltd (ASX: 3PL)

3P Learning has fallen off the radar of most investors following a disappointing performance over the last 18 months. However, the outlook for the business is looking far more positive under the leadership of its new CEO who is focused on implementing a turnaround strategy aimed at driving operating costs lower. Importantly, 3P Learning has a strong development pipeline of new products and this should help the $134 million education company to grow its top and bottom line numbers over the coming years.

IVE Group Ltd (ASX: IGL)

IVE Group is a $283 million company that specialises in print and marketing communications services and holds market leading positions across a number of industry sectors. Admittedly, investors should not expect a huge level of organic growth from the company, but there is a significant opportunity for consolidation in the segment that will provide IVE with the potential for further growth through acquisition. Importantly, the shares trade on a P/E ratio of less than 10 and offer a very attractive dividend yield of around 6.5%

Motley Fool contributor Christopher Georges owns shares of 3PLEARNING FPO and Pioneer Credit. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »