MENU

4 small-cap shares I’m tipping for big things in 2018

After a slow start to the year, in the last few months the S&P/ASX SMALL ORDINARIES (Index: ^AXSO) (ASX: XSO) has found its feet and raced higher to bring its year-to-date gain to 12.5%.

The good news is that that due to the high number of small-cap shares on the Australian share market I believe that this strong run can continue long into 2018.

Which could make it an opportune time to consider adding some small-caps into your portfolio. Four shares which I’m tipping for a solid 2018 are listed below. Here’s why I like them:

Big Un Ltd (ASX: BIG)

This video technology company’s shares may be up over 1,500% this year, but I still believe it has the potential to climb notably higher in 2018. Yesterday Big Un advised that cash receipts in the second-quarter of FY 2018 are expected to be up 398% on the prior corresponding period to $20 million. If it continues this form in the following quarters then I estimate it will deliver a full-year cash profit of approximately $30 million.

Change Financial Ltd (ASX: CCA)

Change Financial, formerly known as ChimpChange, is a mobile banking company that is targeting millennials and the underbanked in the massive United States market. I’ve been very impressed at the way it has continued to grow its user numbers and transactions at a solid rate this year and expect more of the same next year.

National Veterinary Care Ltd (ASX: NVL)

Due to the high level of pet ownership and its growth through acquisition strategy, I believe this fast-growing veterinary company is well-positioned to deliver above-average earnings growth for the foreseeable future. This year the company expanded into the New Zealand market, opening up the door to further acquisition opportunities.

Zenitas Healthcare Ltd (ASX: ZNT)

This home care and health services company would have to be one of my favourite small-cap shares in the healthcare sector. Demand for healthcare services is expected to rise considerably over the next couple of decades due to Australia’s ageing and growing population. I expect Zenitas to profit more than most due to the National Healthcare Reform pushing the burden of healthcare services from hospitals into primary care.

Love exciting small-cap shares? Then don't miss these disruptive and exciting shares.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of ChimpChange Ltd. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.