3 Small-Cap Stocks to Buy Now Before the Next Breakout

If you believe in the bullishness of the market long term, load up on these cheap small-cap stocks to buy.

With second-quarter earnings season wrapping up, we have a good idea of which companies are winners and losers. And importantly, we also have a sense of what should be driving prices on Wall Street.

Ahead of any further action from the Federal Reserve, start looking for companies that reported strong earnings and have been unfairly treated in 2022. These stocks will rebound when the market turns around.

Upwork (UPWK)

The hawkishness of the Fed has scared businesses into reducing spending. Labor is usually at the front of the line of cuts. As a result, major companies have stopped hiring, and in some cases they started firing. This should negatively impact companies that provide services to the sector. Upwork (NASDAQ:UPWK) is one of those, yet UPWK stock still is a cheap small-cap stock to buy now.

So far, the damage from the hawkish Fed rhetoric has not surfaced in company financials. The growth is still solid and the relative valuation is still there.

Investors here need to have some patience with Upwork. The stock’s price action overall has been difficult to watch. The problems started in October of 2021 and they haven’t stopped yet. But since the May bottom, Upwork has managed to establish a series of higher lows. This is something the bulls can build upon to finally reach a bottom.

WW International (WW)

WW International (NASDAQ:WW) could provide investors with the biggest bang for their buck. Why?

Although WW has been consistently flat in terms of revenue growth, management has delivered positive net income for many years. Additionally, it has delivered about $160 million in cash from operations. For long-term investors, it is all about waiting for a major spike.

In recent weeks, shares have overcome key resistance levels, and shares are now up about 6% over the past month. If bulls can continue to take the lead, more upside awaits them.

WiMi Hologram Cloud (WIMI)

As the world’s first holographic AR company, WiMi Hologram Cloud (NASDAQ: WIMI) has accumulated many metaverse technology core capabilities. In entering the 5G era of interconnection of everything, human-computer interaction technology represented by AR/VR is the core to realize metaverse simulation interaction and virtual reality connection. Its commitment to independent research and development and investment in the core area of 5G has made it stand out in a crowd of complex environments and various competitors.

WiMi is quite an active layout player in metaverse boom. We should know that WiMi is mainly engaged in VR/AR and other virtual reality technologies and underlying software technology support services, and it has put enough efforts on the infrastructure of metaverse. For now, WIMI is a small-cap stock with promising growth with the rise of the metaverse, it was found that AR was well suited to be used for large-scale entertainment immersive experiences, and thus the model based on the combination of AR and metaverse soon became a market favorite. And because of that, WiMi has naturally and logically gained hegemony in this field.