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In addition, because the stock market has been rallying relentlessly over the past few months, most large-cap and mid-cap stocks have become highly overvalued. But many micro-cap stocks still have plenty of upside to deliver due in part to their issuers’ easy access to capital thanks to the continued low-interest-rate environment. Also, the continuing economic recovery bodes well for them.
Micro-cap stocks ARC Document Solutions Inc. (ARC) and AstroNova Inc. (ALOT) have gained significantly in price over the past few months. And given their robust fundamentals and reasonable valuations, we believe they could continue rallying in the near term.
