7 Small-Cap Stocks Trading at a Huge Discount Right Now For aggressive investors who are seeking maximum reward potential while understanding the risks involved in such endeavors, focusing on small-cap stocks trading at a discount may be an appropriate tactic given the aforementioned framework. Again, it’s not an approach everybody should take. However, for robust return potential without diving into exotic financial vehicles, this may be an enticing methodology. Primarily, small-cap stocks to buy on the dip benefit from the concept known as the law of small numbers. Basically, it doesn’t take much “energy” to move a low-priced security from one threshold to another. In contrast, larger-capitalization names may require significant fundamental catalysts — such as incredibly robust earnings — to see conspicuously big gains. Second, small-cap stocks trading at a discount enjoy a superior fundamental profile in that these names fly under the radar. However, once a news item or development jumpstarts their valuations, the wider public could get wind of the opportunity.