After a slow start to the year, in the last few months the S&P/ASX SMALL ORDINARIES (Index: ^AXSO) (ASX: XSO) has found its feet and raced higher to bring its year-to-date gain to 12.5%.
The good news is that that due to the high number of small-cap shares on the Australian share market I believe that this strong run can continue long into 2018.
Which could make it an opportune time to consider adding some small-caps into your portfolio. Four shares which I'm tipping for a solid 2018 are listed below. Here's why I like them:
Big Un Ltd (ASX: BIG)
This video technology company's shares may be up over 1,500% this year, but I still believe it has the potential to climb notably higher in 2018. Yesterday Big Un advised that cash receipts in the second-quarter of FY 2018 are expected to be up 398% on the prior corresponding period to $20 million. If it continues this form in the following quarters then I estimate it will deliver a full-year cash profit of approximately $30 million.
Change Financial Ltd (ASX: CCA)
Change Financial, formerly known as ChimpChange, is a mobile banking company that is targeting millennials and the underbanked in the massive United States market. I've been very impressed at the way it has continued to grow its user numbers and transactions at a solid rate this year and expect more of the same next year.
National Veterinary Care Ltd (ASX: NVL)
Due to the high level of pet ownership and its growth through acquisition strategy, I believe this fast-growing veterinary company is well-positioned to deliver above-average earnings growth for the foreseeable future. This year the company expanded into the New Zealand market, opening up the door to further acquisition opportunities.
Zenitas Healthcare Ltd (ASX: ZNT)
This home care and health services company would have to be one of my favourite small-cap shares in the healthcare sector. Demand for healthcare services is expected to rise considerably over the next couple of decades due to Australia's ageing and growing population. I expect Zenitas to profit more than most due to the National Healthcare Reform pushing the burden of healthcare services from hospitals into primary care.
