Zacks has recently put out a fresh batch of small-cap recommendations. While the five companies operate in different sectors, they have one thing in common — solid short-term upside, backed up by a favorable Zacks Rank.
Talkspace
Talkspace, with a market capitalization of $577.7 million, provides virtual mental health services to both individual and corporate clients. It partners with several insurance companies, including the U.S. federal government program Medicare. Since September, Talkspace’s services have been available on the Amazon Health Services platform. In the third quarter of 2024, the company’s top line grew 23% year over year to $47.4 million, while the bottom line came in at $1.9 million versus a net loss of $4.4 million in the same period last year. For the full-year 2024, Talkspace guides for revenue growth of 23-30% to $185-195 million.
According to MarketWatch, four analysts cover Talkspace. Three recommend buying the stock, while one has it as a “hold.” Their average target price of $5 per share implies upside of more than 46% versus the last closing price.
RYAM
RYAM, formerly known as Rayonier Advanced Materials, supplies cellulose specialties products used in chemicals and polymers for LCDs, textiles, cosmetics, and more. In the third quarter of 2024, RYAM reported 11% year-over-year growth in net sales to $401 million, while its net loss jumped 32% to $33 million.
According to MarketWatch, the single analyst covering RYAM has a “buy” recommendation with a target price of $12.50 per share, indicating upside of almost 42% versus the last closing price.
Castle Biosciences
Castle Biosciences, with a market capitalization of $848 million, develops and sells medical genetic tests. Its melanoma test predicts the risk of metastasis or recurrence, while another test enables doctors to tailor medications for patients with depression. In the third quarter of 2024, the company posted $86 million in revenue, up 39% year over year, and $2.3 million in net income, compared to a net loss of $6.9 million in the previous-year period.
According to MarketWatch, the nine analysts who cover Castle Biosciences unanimously rate it a “buy.” Their average target price is $41.60 per share, indicating more than 37% upside versus the last closing price.
Private Bancorp of America
Coming in with a market capitalization of $286 million, Private Bancorp of America is the holding company for CalPrivate Bank, which, in its own words, offers “creative loan options” and other services to affluent clients. The holding’s net income for the third quarter of 2024 came in at a record $9.5 million, up almost 12% year over year.
According to MarketWatch, the three analysts covering Private Bancorp of America agree that it deserves a “buy” rating. Their average target price of $64 per share suggests upside of nearly 29% versus the last closing price.
Research Solutions
Research Solutions, with a market capitalization just shy of $113 million, offers cloud-based technologies for research-intensive industries. For example, its platform allows researchers to discover other works in their field, track reprints of their publications, and safeguard intellectual property. Its clients include pharmaceutical giants like Sanofi, GSK, and Novo Nordisk, as well as Harvard Medical School, Zurich University, and the chemical company 3M. For the fiscal-2024 full year (ended June 30), the company reported $44.6 million in revenue, up 18% year over year, and a $3.8 million net loss, down from net income of $572,000 a year earlier.
According to MarketWatch, the three analysts who cover Research Solutions recommend buying the stock. Their average target price of $5.12 per share implies upside of almost 48% versus the last closing price.
