Recently released: our 3 top small-cap stocks to consider buying now [PREMIUM PICKS]

Small-cap shares tend to be more volatile than larger companies, so we suggest investors should look to build up a portfolio of at least 15 small-cap stocks.

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The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Premium content from Motley Fool Hidden Winners UK

Our monthly Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of small-cap recommendations, to help Fools build out their stock portfolios.

“Best Buys Now” Pick #1:

Judges Scientific (LSE:JDG)

Why we like it: Judges Scientific (LSE: JDG) owns a carefully acquired, select group of niche specialist scientific equipment manufacturers, growing from a £4m investment vehicle in 2003 to a business valued at over £660m by the market today. It has achieved this growth with a common-sense, savvy approach to acquisitions — buying world-leading companies that boast ‘an established product range, an international customer profile and sustainable sales, profits and cash generation’.

“Chief executive David Cicurel founded the company and has led it ever since, sticking to his method of acquiring companies like these very selectively. Cicurel remains the ‘key man’ at Judges. Even in retirement – which the 74-year-old CEO isn’t contemplating any time soon – he would like to work in an advisory capacity on acquisitions. Additionally, we’re satisfied with what we see as the strength of the wider management team, which includes Mark Lavelle, formerly of Halma, and COO of Judges since 2017.”

Why we like it now: Last month, Judges Scientific reported that its trading in the first four months fell short of expectations. Consequently, the share price has dropped almost 20%. However, Chairman Alex Hambro expressed optimism for the second half, anticipating a stronger performance that would enable the company to meet full-year market expectations. The current market consensus for Judges Scientific for the year ending 31 December indicates adjusted basic earnings per share of £3.8, implying a forward PE ratio of 26 times. Hambro further confirmed that the next Geotek contract is now in negotiation, with an expedition starting at the end of 2024. We suggest adding to your position during this period of weakness.

“Best Buys Now” Pick #2:

Redacted

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

The Motley Fool UK has recommended Judges Scientific plc. Mark Rogers owns shares in Judges Scientific plc. 

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