What's the idea? The past decade has been relatively difficult for investors in small-cap stocks as globalization, moderate inflation and low-interest rates have pushed the values of large corporations to new heights. However, it seems that the economic winds have changed their direction. As businesses reorient on domestic production and capital expenditures grow, the US-focused small-cap companies can show impressive results.

What's the idea? Origin Materials operates in a large and growing market that is actively supported by the government. Over the past decade, Origin Materials has created significant barriers to market entry by competitors thanks to the company’s extensive patent portfolio. Despite its early stage of development, Origin Materials is already facing huge demand for its products. The company is expected to start generating revenue in 2023 and then grow at a compound annual rate of 84.24% through 2030. According to the Wall Street consensus, the stock has an upside potential of 112.5%. According to our estimate, ORGN's fair value is $16.6, which implies an upside potential of 111.7%

What's the idea? Despite the headwinds that the digital advertising market is facing, the industry can provide Digital Turbine with significant room for growth in the long term. SingleTap licenses have great potential as the solution increases app downloads and improves the return on investment (ROI) of advertising campaigns. Partnerships with major technology companies can ensure SingleTap's widespread adoption, which will lead to a significant increase in Digital Turbine's revenue. The company actively attracts foreign clients. Overseas, revenue per app user is lower than in the US, providing room for catch-up growth. The company has the potential for further profitability increase through revenue growth and improved operating leverage. Digital Turbine trades at a discount to the industry average. According to the Wall Street consensus, the stock’s upside potential is 62.45%.

What's the idea? Brazil's economy is one of the most stable in the region, and its capacity provides significant growth potential for the company. Growing credit card and e-commerce penetration in Brazil will boost PagSeguro's transaction processing revenues. Although it has been a relatively short time since its launch in 2019, PagBank has become the second most-used neo-bank in Brazil. Expansion in the lending business can provide the company with interest income, which has a positive correlation with the key rate. PagSeguro is listed at a discount compared to the industry average. According to the consensus of investment banks, the stock has significant upside potential.

2022 delivered a profound inflationary shock to the world, one that was brewing from the excessive stimulus of the pandemic response policies of 2020 and 2021, and then doubly aggravated by supply side disruptions and then in early 2022 by Russia’s invasion of Ukraine. As we say farewell to an inflationary annus horribilis, many believe that we are somehow set to return to some form of normality on the heels of a hefty dose of central bank policy tightening. This year’s Outrageous Predictions argue that any belief in a return to the disinflationary pre-pandemic dynamic is impossible because we have entered into a global war economy, with every major power across the world now scrambling to shore up their national security on all fronts, whether in an actual military sense, or due to profound supply-chain, energy and even financial insecurities that have been laid bare by the pandemic experience and Russia’s invasion of Ukraine.

What's the idea? Although Generac is the market leader in standby power generators, the company's current penetration rate is only 5.5%. A one percentage point increase in penetration could provide Generac with around $3 billion in additional revenue. We expect the company to be one of the beneficiaries of the growing solar energy market through its advanced storage solutions. Generac's board of directors has approved a new $500 million stock buyback programme, to be implemented within 24 months. Generac is trading at a discount to the industry average. According to Wall Street consensus, the stock price has an upside potential of more than 60%.

What's the idea? An increasing population and economic growth in emerging markets will stimulate livestock production, which will be a growth driver for the Feed Ingredients segment. Management expects the collagen peptide market to double in the next five years. The company is expected to have additional collagen production capacity as early as the beginning of 2023. We expect the Fuel Ingredients segment to continue to show growth on the back of favourable market conditions and capacity expansion. Target markets have low susceptibility to economic cycles, which can ensure Darling's resilience even in the event of a deep recession. According to the Wall Street consensus, the stock's upside potential exceeds 53.15%.

What's the idea? A slowdown in US inflation should help the company improve its operating performance and positively impact the value of gold. The projects in the pipeline have good potential for Kinross value growth. Adequate debt levels allow the company to continue with key projects even in turbulent conditions. About Company. Kinross Gold Corporation is engaged in gold mining and related activities including exploration, acquisition and reclamation of gold properties, mining and processing of gold-bearing ore. The company has operations in the United States, Brazil, Chile, Mauritania and Canada.