Over the last 12 months the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) has managed to carve out an impressive 16.6% gain, vastly outperforming the illustrious S&P/ASX 200.
I believe this gain demonstrates why having a little exposure to small-cap shares can be a good thing for a portfolio.
With that in mind, here are five small-cap shares which I think investors ought to be watching closely today:
Livetiles Ltd (ASX: LVT)
LiveTiles is a fast-growing digital workplace platform provider with its eyes firmly fixed on the massive artificial intelligence market. The company has recently signed AI-related deals with tech giant Microsoft and Clean Energy Smart Manufacturing Innovation Institute (CESMII).
National Veterinary Care Ltd (ASX: NVL)
I think that this veterinary company could be a great long-term buy and hold investment option due largely to its strong management team and its growth through acquisition opportunities in a highly fragmented veterinary industry.
Swift Networks Group Ltd (ASX: SW1)
This entertainment and telecommunication services company provides fully integrated solutions for the resources, hospitality, lifestyle village, and aged care accommodation sectors. I believe there is a huge opportunity for the company in the aged care sector due to Australia’s ageing population.
Volpara Health Technologies Ltd (ASX: VHT)
This digital health company’s technology enables personalised, high quality breast cancer screening based on automated, objective measurements of breast density, compression and radiation dose. Annual recurring revenues are expected to meet or exceed its full-year 200% growth target this year.
Zenitas Healthcare Ltd (ASX: ZNT)
Zenitas is a growing home care and health services company which listed on the ASX last year. With the National Healthcare Reform aiming to push the burden of healthcare services from hospitals into primary care, I believe Zenitas is in a great position to profit.
Finally, here are three more exciting shares which could have bright futures ahead of them.
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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of NATVETCARE FPO and VOLPARA FPO NZ. The Motley Fool Australia has recommended LIVETILES FPO and Zenitas Healthcare Ltd. 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.