Here are 3 small-cap shares I’m tipping for big things

Although small-cap shares have underperformed the broader market so far this year, I believe in the long-term this area of the market has the potential to generate outsized returns for investors.

Three small-cap shares which I believe have significant growth potential are listed below. Here’s why I think they could be great buy and hold investments:

Although the Apollo Tourism & Leisure Ltd (ASX: ATL) share price has rallied 35% since listing on the ASX at the end of last year, I don’t believe it is too late to invest in the recreational vehicle retailer. As well as receiving a boost from the tourism boom, Apollo is a company I expect to benefit from the baby boomer generation. The cashed-up “grey nomad” market is a key reason why Apollo posted an 18.3% increase in revenue and a massive 72% increase in earnings before interest and tax for the first-half of FY 2017.

The Freedom Insurance Group Ltd (ASX: FIG) share price is another which has gone gangbusters since listing on the ASX. Despite almost doubling in value its shares are still trading at under 14x estimated FY 2017 earnings. I can’t say I’m surprised to see the life insurance products specialist’s shares rally by so much. Demand for its products has been so strong the company has had to upgrade its pro forma full-year guidance twice already since listing at the end of last year.

So far this year the Zenitas Healthcare Ltd (ASX: ZNT) share price is up just 2%. I feel this could make it an opportune time to invest in the home care and health services company. Zenitas provides a range of community-based health services that provide integrated care solutions with the aim of reducing the high cost of acute hospital care. It currently operates 54 locations across Australia, but is intent on growing its network rapidly through an acquisition strategy. With Australia’s population ageing, Zenitas is certainly a company worth keeping a close eye on.

Finally, I would suggest investors team up an investment in either Apollo, Freedom, or Zenitas with one of these high-flying blue-chip shares. I expect each to smash the market this year, making it a great time to snap them up.

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.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.

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