3 exciting small cap ASX shares to watch

Check out these highly rated small cap ASX shares…

| More on:
A man watches the share price movement closely.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re wanting to invest in the small side of the Australian share market, then the three small caps listed below could be worth a closer look.

Here’s why these small cap ASX shares could be worth adding to your watchlist:

Adore Beauty Group Limited (ASX: ABY)

The first small cap to watch is Adore Beauty. It is a leading online beauty retailer which has been growing strongly over the last few years. This has been driven by a significant lift in customer numbers thanks to the shift to online shopping. The good news for Adore Beauty and investors is that this shift is only really getting started in the beauty category. This gives the company a long runway for growth as the shift continues and more sales move online.

Alcidion Group Ltd (ASX: ALC)

Another small cap share to watch is Alcidion. It is a growing informatics solutions company which provides software which has been designed to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Demand has been strong for its offering, which is supporting strong sales growth. For example, earlier this week Alcidion revealed that year to date FY 2022 new sales had reached $42.9 million. This is up 93% on cumulative new sales at the same time last year.

Catapult Group International Ltd (ASX: CAT)

A final small cap to look at is Catapult. It is a global sports analytics company that provides elite sporting organisations and athletes with real time data and analytics to monitor and measure athletes. It has been a positive performer in FY 2022, with the company reporting a 13% increase in revenue to $37.5 million during the first half  This was driven by a sizeable 29% growth in subscription revenue, which reflects Catapult’s strategic shift to a focus on high quality recurring revenue SaaS deals.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alcidion Group Ltd and Catapult Group International Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has positions in and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Adore Beauty Group Limited and Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Small Cap Shares

Small Cap Shares

4 reasons to stick with battered small-cap ASX shares

Is it horrifying to look at your smaller-cap stocks right now? Here's a pep talk to get you through a…

Read more »

happy investor, share price rise, increase, up
Small Cap Shares

Brokers name 2 exciting small cap ASX shares to buy with 80%+ upside

Check out these highly rated small cap ASX shares...

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Small Cap Shares

‘Frustrating’: Fund backs 3 great ASX shares with plunging prices

One of the best funds in recent years plummeted 14% last month. Here are the discounted stocks it is staying…

Read more »

Small Cap Shares

2 buy-rated small cap ASX shares that this fund manager likes

Reject Shop is one of the ASX shares in the WAM Microcap portfolio.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Small Cap Shares

Broker names 3 emerging ASX shares to buy now

Here are three shares to consider according to Goldman Sachs...

Read more »

Rocket going up above mountains, symbolising a record high.
Small Cap Shares

2 highly rated small cap ASX shares that analysts say have huge potential

These small caps could be worth considering after the market selloff...

Read more »

A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares
Small Cap Shares

Analysts say these small cap ASX shares have big futures

These small cap shares have been tipped as buys...

Read more »

Small Cap Shares

Analysts name 3 small cap ASX shares to buy

Are these small caps heading higher?

Read more »