Last week I named the first of a number of small-cap shares which I think are worth keeping a very close eye on in 2018.
Three more small-cap shares which I believe have the potential to outperform the market in 2018 are listed below. Here’s why I like them:
Family Zone Cyber Safety Ltd (ASX: FZO)
Although the shares of this cyber safety products and services provider have more than quadrupled in value this year, I think they could still outperform the market in 2018. This year the company has made in-roads into the U.S. education sector and signed a number of agreements with leading Asian telecommunication companies. The latter has given the company access to almost 180 million mobile subscribers in which to attempt to sell its cyber safety products to.
National Veterinary Care Ltd (ASX: NVL)
This veterinary company has been growing its network through acquisitions at a very strong rate and shows little sign of slowing. A combination of this acquisitive growth and solid organic growth led to a 25% increase in revenue in FY 2017. Pleasingly, management expects to exceed this level of growth in FY 2018. If it delivers on this then I think there’s every chance the company’s shares will outperform the market.
Swift Networks Group Ltd (ASX: SW1)
I’m a big fan of this entertainment and telecommunication services company. Whilst the name may not be familiar, chances are you have used its entertainment system in a hotel whilst traveling around Australia. The company provides fully integrated solutions for the hospitality, resources, student accommodation, lifestyle village, and aged care accommodation sectors. The one area I’m most bullish on is the aged care sector, where I believe it has a significant opportunity due to Australia’s ageing population.
Finally, here are three more exciting small-cap shares disrupting industries.
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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.
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Motley Fool contributor James Mickleboro has no position in any of the 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.