Just released: our top 3 small-cap stocks to consider buying before November [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 was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

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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:

Treatt (LSE:TET)

Why we like it: Treatt (LSE: TET) is a speciality chemicals business that focuses on providing ingredients for customers primarily in the food & beverage space. Between 2012 and the end of 2023, CEO Daemmon Reeve and the board have successfully repositioned the company from being a low-margin supplier of commoditised bulk chemicals into the relatively-higher-margin player it is today. They’ve done this by moving up the value-added chain and working more closely with customers to supply specialised ingredients tailor-made for their products.

“While Reeve has departed the business, Treatt’s performance over the past few years has been impressive, and new chief exec David Shannon inherits a company operating in a position of strength. The company’s newly upgraded UK HQ and expanded facility in Florida give it expanded and upgraded lab, production, and warehousing facilities, which management believes will provide a base for continued growth. With a large and growing end market to target, and an attractive strategy to continue working its way up the value-added chain, we believe Treatt’s long-term potential is exciting, even if the new boss will have to work to gain the trust of the market in the same way as longtime CEO Reeve did.”

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

Why we like it now: Treatt shows strong financial performance, with 16% H2 revenue growth driven by organic business expansion and a 7% increase in adjusted EBITDA, thanks to growth momentum in China. Moreover, the company reduced its net debt significantly to £0.7 million, reflecting robust cash generation and cost discipline. It is now trading at 20.9 times earnings versus the industry leaders of 36 times. We are convinced that its recent record of increasing profits and managing spending against tough market conditions makes this a price worth paying.

“Best Buys Now” Pick #2:

Redacted

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But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

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 Treatt plc.

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