7 Micro-Cap Stocks to Take a Chance on Now Large-capitalization stocks have performed better than small-cap stocks over the last year. The overall markets are down 3.7% and core small-caps are down 14% , according to Morningstar.com. So, while momentum investors might choose to buy large-cap stocks for a market recovery, other investors might choose to buy overlooked small-caps that haven’t been bid up. But investors could also consider buying micro-cap stocks for overlooked value. Micro-cap stocks are those with a market capitalizations between $50 million and $300 million. Micro-caps are riskier than the larger-cap companies, mostly stemming from them representing smaller companies. Financing might be more difficult for them than it is for larger companies. And often micro-cap companies have smaller balance sheets, giving them less room for error. There is less time for the companies to become profitable, and even if they are, there might be problems in financing their growth. 7 Overlooked Value Stocks to Buy Before Wall Street Catches On Micro-cap stocks also start from a smaller revenue and earnings base and have a better chance of exponentially growing — and having their stock reflect that growth.