3 small cap stars on the rise

The good news for investors that are interested in small cap shares is that I think there are some great options at the small end of the market right now.

Three that I believe investors should be taking a closer look at include:

ELMO Software Ltd (ASX: ELO)

I’ve been very impressed at the progress of this cloud-based talent management software solutions provider since listing on the Australian share market. Not only has the company smashed my expectations, it has smashed its prospectus forecasts. Unsurprisingly, this sent the ELMO share price surging higher. ELMO has opted to take advantage of this and recently raised $45 million from institutional investors which will be used to accelerate its growth. I believe that ELMO is well worth a closer look today.

Gentrack Group Ltd (ASX: GTK)

This billing software provider could be one of the best long-term investment options at the small-end of the market in my opinion. Gentrack provides its software to airports, water, and electricity companies, generating recurring revenues from annual fees, support services, and project services. Last month the company announced a new deal with E.ON, one of the world’s largest energy utility service providers. This new contract focuses on the delivery of its Velocity software to support E.ON’s energy supply business initially in the UK and Romania. I expect it could roll out across E.On’s entire operation eventually.

National Veterinary Care Ltd (ASX: NVL)

Another share which I think could be a great buy and hold small cap investment is National Veterinary Care. Thanks to a winning combination of organic and inorganic growth, the veterinary company reported a 27.6% increase in first-half revenue to $41.6 million and a 27.7% lift in half-year net profit after tax to $3.3 million in February. I expect more of the same in the second-half and beyond, especially given the growth through acquisition opportunities the company has in the highly fragmented veterinary industry.

Lastly, here are three more rising small cap shares worth adding to your watch list today.

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 has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ELMOSFTWRE FPO. The Motley Fool Australia owns shares of NATVETCARE FPO. The Motley Fool Australia has recommended GENTRACK FPO NZ. 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 Scott Phillips.

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.