3 Small-Cap Stocks With Big-Cap Potential

If you’re looking for small-cap stocks with big-cap potential, look no further than Docebo Inc (TSX:DCBO)(NASDAQ:DCBO).

| More on:

Are you looking for small-cap stocks with big-cap potential?

If so, you might just be in luck.

While truly promising small caps are rare, they do exist. Every big company had to start somewhere, and tomorrow’s big companies exist somewhere today. With that in mind, here are three small-cap stocks that could someday become big caps.

HIVE Blockchain Technologies

HIVE Blockchain Technologies (TSXV:HIVE) is a Canadian crypto mining company with a $1.5 billion market cap. That places it squarely in small-cap territory. HIVE makes money by mining and selling Bitcoin and Ethereum. It does so in cold-climate data centres in Iceland, Sweden, and northern Canada. The cold climates in these regions reduce electricity consumption related to cooling, which helps keep costs down. HIVE’s most recent quarter was a big win, with $13.7 million in income from currency mining (up 174%), $13.7 million in cash flows, and $0.05 in EPS (up 400%). It was a stellar quarter by just about every metric, and as long as crypto keeps rallying, HIVE will probably keep posting amazing results.

Docebo

Docebo (TSX:DCBO)(NASDAQ:DCBO) is a Canadian e-learning startup that develops software for employee training. Its core product is an online learning platform that lets companies create self-directed training.

DCBO stock went on a big rally in 2020. When COVID-19 came on the scene, companies had to transition to a work-from-home model to keep up with the public health regulations. That led to a surge in interest in remote work services like Docebo’s software, which allows companies to train employees at home.

How is Docebo doing financially?

Well, in its most recent quarter, it delivered the following:

  • Revenue: $75.6 million (up 76%).
  • Subscription revenue: $23.6 million (up 76%).
  • Gross profit: $20.5 million (declined).
  • Net loss: $7.2 million (increased as a percentage of revenue).

As you can see, the quarter was a pretty mixed picture. Basically, revenue increased but expenses increased even more. That might seem alarming, but this kind of thing is quite common for tech companies fresh out of their IPO. As long as DCBO is financially responsible, it should have a bright future ahead of it.

WELL Health

WELL Health Technologies (TSX:WELL) is a healthcare company that supports healthcare practitioners and their patients. Its main service is telehealthcare, but it has a variety of assets including the following:

  • A chain of health clinics in B.C.
  • A number of omni-channel health businesses.
  • A gastroenterology anesthesia company.
  • An electronic medical record service.
  • And more.

It’s a pretty broad collection of healthcare assets, but the big theme is improving healthcare delivery in Canada. And it seems to be working. In its most recent quarter, WELL delivered phenomenal results:

  • $61.8 million in revenue (up 484%).
  • $11.9 million in adjusted EBITDA (up from a loss).
  • $30.2 million in gross profit (up 615%).
  • 559,000 patient visits (up 173%).

Those are pretty good results overall. The growth rate in sales was just phenomenal, and the company was even profitable by some metrics. Over the last five years, WELL has rallied by thousands of percentage points due to results like these. It’s been a great run, and the best may still be to come.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Docebo Inc.

More on Tech Stocks

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

telehealth stocks
Tech Stocks

Well Health Stock: Buy, Sell, or Hold?

Another record-breaking quarter and strong demand sets the stage for continued momentum for Well Health stock.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

profit rises over time
Tech Stocks

2 Non-AI Tech Stocks to Buy in November for Better Returns

Not all AI stocks are riding the hype train, and for many investors, well-understood and predictable growth stocks might be…

Read more »

worry concern
Tech Stocks

In a Few Years, You’ll Probably Regret Not Owning BlackBerry Stock

Here’s why I believe BlackBerry could be one of the most overlooked Canadian tech stocks right now.

Read more »

A worker uses a double monitor computer screen in an office.
Tech Stocks

Is Constellation Software Stock a Buy for its 0.25% Dividend Yield?

Here's what investors may want to consider when it comes to Dollarama (TSX:DOL) and its relatively low dividend yield.

Read more »

Nurse talks with a teenager about medication
Tech Stocks

Shares of WELL Health Just Zoomed. Is It a Buy?

Given its improving financials and healthy growth prospects, WELL Health could deliver superior returns over the next three years.

Read more »