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.

Mark Rogers

As the founder of The Twelfth Magpie, Mark approaches the stock market with the same old-fashioned business instincts and values that he honed growing up around the family business. An investor for 25 years, Mark specialises in unearthing top-quality under-the-radar investments in the small-cap market. He currently serves as Director of Investing for Twelfth Magpie services and Managing Director of The Twelfth Magpie.

Published 28 June, 2024 12:07 am BST

| More on: JDG

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’.

Should you buy Judges Scientific Plc shares today?

Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.

That’s why this could be an ideal time to secure this valuable research – Mark’s analysts have scoured the markets to reveal 5 of his favourite long-term ‘Buys’. Please, don’t make any big decisions before seeing them.

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“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.