Small caps have punched well above their weight in the last financial year as the sector outpaced its bigger brothers. Some of these high flyers may have more left in the tank too.
This isn’t to say that the S&P/ASX SMALL ORDINARIES (Index:^AXSO) (ASX:XSO) can deliver another 20% gain in FY19 like it did last year compared to the 7% rise in the S&P/ASX 200 (Index:^AXJO) (ASX:XJO), but there are clearly still great opportunities among the juniors for those who care to look.
There are two that are worth putting on your radar. The first is consumer financing solutions company Zip Co Ltd (ASX: Z1P) which has jumped around 33% over the past 12-months.
That’s not quite as spectacular as the gains made by cannabis company Cann Group Ltd (ASX: CAN) or online shopping site Kogan.com Ltd (ASX: KGN) but Morgans thinks there’s more room for Zip Co to zoom ahead.