7 Hot Small-Cap Stocks to Buy in September

And some professional money managers who believe in “momentum investing” will say that the best small-cap stocks to buy are those whose values ​​have climbed in recent weeks. This increases the chances of making big money in the market.

That said, consider these seven small stocks to buy as we head into September.

Zynex (ZYXI)

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Zynex (NASDAQ:ZYXI) sells its own and other companies’ medical devices. Many of the products sold by Zynex are pain-relievers. Its flagship product -NextWave – uses electrical currents to relieve pain.

Due to the increased fear of opioid addiction, the demand for Zynex pain relief products is likely to be very strong. The company’s orders reached record levels in Q2, as its orders rose 19% quarter over quarter and 10% year over year, and the company previously reported that its sales jumped of 18% year over year in Q2.

For the full year, Zynex expects its EBITDA, excluding certain items, to come in between $25 million and $35 million. Zynex’s forward price earnings ratio is a reasonable 21.5, making it one of the better small-cap stocks to buy right now.

Yatra Online (YTRA)

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As in the US, India is experiencing a major rebound in travel as coronavirus fears subside and as lockdowns are lifted.

Indian online travel agency Yatra Online (NASDAQ:YTRA) is clearly benefiting from that trend.

Yatra’s revenue rose 141% year-over-year in the second quarter to $15.9 million, excluding certain items. Its adjusted EBITDA in Q2 reached $1.6 million.

Shares trade at an attractive forward price-sales ratio of just 1.7 ($173 million market cap/$106 million analysts’ mean estimate for next year).

TSR (TSRI)

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TSR (NASDAQ:TSRI) should be reporting very strong financial results in the current macro environment. The US labor market remains tight while many IT companies are still generating huge profits. Those IT firms are more likely than in previous years to use recruiters like TSR and pay them high commissions.

For its fiscal Q4 ended in May, TSR’s sales jumped 24% to a record $26.2 million, while its EPS came in at 15 cents, compared to a per-share loss of 2 cents in the same period period last year. For the full fiscal year, TSR’s EPS jumped to $3.30, compared with a loss per share of 31 cents last year.

The stock has climbed 12% over the past three months, and its P/E ratio is a paltry 2.4. Since the IT labor market is likely to remain very tight for a long time, TSR stock is one of the better small-cap stocks to consider.

Aptorum (APM)

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In January, the FDA granted orphan drug designation to by Aptorum (NASDAQ:APM) SACT-1 cancer treatment, no InvestorPlace writer Joel Baglole reports.

A recent clinical trial indicated that the drug does not affect the electrical currents in the heart. Phase 1 clinical data also suggested that any QT interval after oral administration of SACT-1 at 150 mg was within clinically acceptable limits.

Despite the recent fall in stocks, Aptorum climbed 4% in August. Moreover, shares have jumped 53% since May.

These gains indicate that Street is very excited about SACT-1. That, in turn, suggests that APT stock could continue to climb further and the drug could become a big moneymaker for the company. In fact, orphan drugs are often very profitable for pharmaceutical firms.

GEE Group (JOB)

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Recruiting company GEE (NYSE:WORK) focuses on placing skilled professionals in positions. In addition to IT workers, Gee also recruits across the white-collar spectrum.

Gee should continue to benefit from the tight labor market for some time, as more companies struggling to hire skilled employees turn to recruiters.

In its fiscal Q3 ended in June, Gee’s operating income reached $3.2 million, up from $1.8 million in the same period last year. And the company’s revenue rose to $41.1 million from $38.1 million in the same period last year.

In the past month, JOB stock is up 30%, while its P/E ratio is a paltry 3.56 making it among the more attractive small-cap stocks out there.

vTv Therapeutics (VTVT)

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vTv Therapeutics (NASDAQ:VTVT) has a diabetes treatment, TTP399, that is getting a lot of attention.

In May, G42 Health care agreed to buy $25 million of VTVT for about $2.41 per share, well above the stock’s current level of $1.

Furthermore, last month, another investment company, CinPax, agreed to acquire $10 million in VTVT stock at $2.41 per share. CinRx also got a warrant to buy another 1.2 million shares at about 72 cents per share. The warrants will be exercisable upon the agreed upon vesting trigger.

vTv aims to start two Phase 3 studies of its drug in the next quarter. In the last three months, VTVT stock has risen 47%.

Zinc8 (ZAIRF)

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Zinc8 (OTC:ZAIRF) is developing an energy storage system to store energy longer than lithium-ion batteries and cheaper.

Based on Zinc8’s recently issued Q2 earnings press release, the system appears to have met all unnamed cloud service providers, including showing discharges of 6+ hours.

The Zinc8 system seems to have passed its test with flying colors and the cloud service provider remains interested in using the system.

Zinc8 is looking to build a factory in Ulster, NY and has received support for the initiative from Senate Majority Leader, Charles Schumer. Given Schumer’s support for the company, I think Zinc8 will likely benefit from the Democrats’ climate bill.

ZAIRF stock has risen 50% in the past three months.

As of the date of publication, Larry Ramer held long positions at VTVT and ZAIRF. The opinions expressed in this article are those of the writers, subject to InvestorPlace.com’s Publishing Guidelines.