The best small cap stocks for 2023

What are the best small cap stocks in this tricky market?

This year’s small cap underperformance has been far worse than usual, according to our own Stuart Roberts. The ASX100 was down only 0.7% over the last twelve months, while ASX Small Ordinaries was down a whopping 18%.

Stuart says investors should get ready for the turn and that this is a stock pickers market in the small caps space. Rising interest rates, and poor investor sentiment seemed to have fuelled fears that the valuation multiple crunch will go on for a long time.

Which sector look attractive right now?

Stuart says discretionary retail looks good and mentions Michael Hill International (ASX: MHJ), Universal Store (ASX: UNI) and Premier Investments (ASX: PMV) as some of the best small cap stocks. He says travel stocks are also appealing and recommends a look at Corporate Travel Management (ASX: CTD).

Watch Stuart on Ausbiz below!

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