Small-caps with big sectoral opportunity: 4 small-caps stocks from one sector with an upside potential of up to 21%

If it is the stock market, risk is a given. This is even more true (and the risk higher) when it comes to small-cap stocks. One way to reduce risk is to focus on companies from a sector with a long runway of growth, or those operating in a niche area. Take, for instance, an auto ancillary company making specialised parts for cars. It’s a limited market, and it makes no sense for another company to enter the segment because the current leader has 85% market share and supplies to every OEM. On the other hand, consider a defence sector company. It is a big playground and it depends on the management how efficiently it expands because indigenous defence production is going to increase. For the record, the companies on our list today are not from the auto ancillary or defence sectors.