The IPO market in 2019 is red-hot.
The deals are coming fast and furious, with privately held companies racing to the public markets at a time of historically high valuations.
Can you blame them?
The appeal is obvious. You invested in a high-risk venture, and now you want to get paid.
Fortunately, there are plenty of "sheep" ready to fork over hard-earned cash to fund your exit.
Too bad retail investors like us will never be in a place to similarly profit, at least in the IPO game.
Most recently, Zoom Video Communications Inc. (NASDAQ: ZM) got in on the act with an IPO. On its first day of trading, shares soared more than 70%.
Those profits were reserved for those Wall Street insiders that were allocated shares before the big jump in price on the first day of trading.
Investors like you and me aren't invited to the party. Instead, we have to find another way to profit handsomely.
That's exactly what we're doing today with the best small-cap stocks to buy in Q2.
These small-cap stocks have yet to be fully discovered by the rest of the market.
Some small caps are already climbing this year, but overall, this class of stocks is looking poised for a run much higher.
5G Is Coming: The tech breakthrough of the century could rest on this $6 stock - get all the details here.
In 2019 alone, the Russell 2000 index of small-cap companies is up a very solid 15%.
Extrapolate that for the entire year, and you get close to what Zoom gained on its first day of trading.
It may not be one day, but the total return in just one year is more than enough to turbocharge any portfolio.
Given that both monetary and fiscal policy are aligned for strong growth, investors can safely buy small-cap stocks in 2019.
Don't worry that many stocks are approaching historical highs.
Profits matter most. And small-cap stocks offer the potential for big gains right now.
Here are the top three small-cap stocks to buy now. Each of these stocks has just earned a top score from the Money Morning Stock VQScore™ system...
Best Small-Cap Stocks to Buy in Q2 2019, No. 3
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The current bull run is 10 years old and gaining strength.
Despite the timing, few would argue that we are on the back end of the cycle.
That would suggest owning material stocks like Hi-Crush Partners LP (NYSE: HCLP).
Typically, inflation runs hot at the end of the cycle. When it does, stocks like Hi-Crush will soar.
Unfortunately, the U.S. Federal Reserve decimated material stocks like Hi-Crush with its rate hiking in 2018.
Hi-Crush was trading at more than $12 per share a year ago. That's three times higher than the current price.
VQScore investors look at that dynamic as an opportunity to buy Hi-Crush today.
This frac-sand company is poised to benefit from higher oil prices and more activity in the domestic shale drilling industry.
Analysts expect the company to more than double profits from the current year to the next. With the stock trading for only 23 times current year estimated earnings, Hi-Crush has IPO-like upside.
And you don't have to be a Wall Street preferred customer to reap the reward.
Best Small-Cap Stocks to Buy in Q2 2019, No. 2
When do investors like to buy what I call "maker" stocks?
During the holidays, when gift-giving is at its peak.
The same concept holds true for Camping World Holdings Inc. (NYSE: CWH). Except the time to buy this seller of camper trailers is in the second quarter, when spring is in the air and dreams of vacations spur consumer buying.
The last six months have not been kind to Camping World.
The stock is down 35% as investors positioned for an earnings recession.
Based on the current earnings season, those fears were overblown.
While there may be reduction in earnings in 2019 compared to 2018, 2020 is setting up for substantial growth.
Analysts expect Camping World to grow profits by 25% from the current year to the next. With shares trading for only eight times current-year estimated earnings, Camping World is a steal.
Rarely do I see stocks trading for single-digit multiples when earnings growth potential is so great.
Historically, that formula has resulted in 100% gains or more. Just like an IPO, even if you have to wait a year or two for the profits.
Best Small-Cap Stocks to Buy in Q2 2019, No. 1
The leaders of the recent market rally have mostly come from the technology sector.
In the next leg higher, look for the consumer sector to lead the way.
Unemployment is low, and wage gains are finally becoming meaningful.
Credit expansion is also part of the story.
Combining consumer strength and credit expansion is retail name Conn's Inc. (NASDAQ: CONN).
The company is poised for significant growth, much like a new IPO.
Since the end of last summer, shares of Conn's are in bear market territory, down nearly 40%.
What was the crime for such a haircut? I can't really find one.
Last year, Conn's made $2.52, putting the company on track for 11% profit growth in 2019, according to analyst estimates.
Most companies are seeing earnings take a step back this year.
And looking forward comes the real power of owning Conn's today.
The company is expected to grow profits by 16% from the current year to the next. Like Camping World, Conn's trades for a single-digit multiple of expected profits. In this case, that multiple is nine times 2019 estimated earnings.
You might not see instant gratification like the IPO market, but owning small-cap stocks like those mentioned above does offer significant upside over the next year or two.
5G Is Coming: The Breakthrough of the Century Could Rest on This $6 Stock
CNBC reports that this opportunity is worth $12.3 trillion... and it's gearing up to make an appearance all over America.
In fact, some of these devices are showing up right in your neighborhood - and I'm willing to bet you didn't even notice.
Our Silicon Valley insider mapped out all the details in this report.