Small-cap stocks often fly under the radar because big companies dominate headlines, so June could be a good time to seek out the best small-cap stocks.

Which Small-Cap Stocks to Buy in June 2021?

1. Axcelis Technologies (Nasdaq: ACLS)

Axcelis Technologies stock is up more than 15% over the last four weeks and up close to 44% this year. ACLS has a market cap of $1.35 billion, which makes it a small-cap stock (with a market cap of $300 million to $2 billion). Axcelis operates in the ion implantation and processing markets of the semiconductor industry. Shares are poised to rally based on the ACLS’s forward price-earnings (P/E) ratio of 16.10. According to estimates, Axcelis earnings will grow by 190% this year and 32% next year. ACLS is one of the top small-cap stocks to buy in June 2021.

2. A10 Networks (NYSE: ATEN)

A10 Networks is another exciting small-cap stock that flies under the radar. The company has a market cap of $788 million. ATEN shares pulled back in April from the January-March rally but have since gained more than 18%. The current rebound appears to have momentum based on earnings expectations. According to estimates, ATEN will experience an EPS growth of 195% this year and 18.32% next year. A10 Network shares trade at a trailing P/E of 39.21. The forward P/E ratio of16.45 promises more upside movement. This is a small-cap stock you want in your portfolio.

3. Cambium Networks (Nasdaq: CMBM)

The Cambium stock price has more than doubled this year. The Illinois-based communication equipment provider now has a market cap of $1.26 billion following this year’s share price rally.CMBM’s wireless broadband networking infrastructure business could continue to grow amid the adoption of 5G networks. Several communications companies will need to upgrade their systems and Cambium could benefit. According to estimates, CMBM earnings will grow by 177% this year. This presents a big opportunity for small-cap stock investors.

4. Turtle Beach (Nasdaq: HEAR)

Turtle Beach shares rallied more than 40% between 12th May and 9th June. The company now has a market cap of $568 million and trades at a P/E ratio of just 12.05. According to estimates, HEAR earnings will grow by 107% this year. The San Diego, California-based consumer electronics company develops and markets gaming headsets. The video gaming industry is one of the best places to invest amid continuous innovation. Turtle Beach is a top small-cap stock that could benefit from industry growth.

5. Ichor (Nasdaq: ICHR)

Ichor is another small-cap semiconductor stock flying under the radar. ICHR shares are up more than 70% this year and 173% over the last nine months. The company supplies gas and chemical delivery systems to the companies that manufacture semiconductors. According to estimates, ICHR earnings per share will grow by a whopping 201% this year. It seems there is more to come from one of the most exciting small-cap stocks to buy in June. Ichor’s forward P/E ratio of just 13.27 is compelling. The company has a market cap of $1.53 billion.

6. Ituran Location and Control (Nasdaq: ITRN)

Ituran provides wireless communications products to the tracking industry. ITRN shares are up more than 32% this year. Its market cap now stands at $576 million. Ituran trades at a trailing P/E ratio of 28.82. Its forward P/E ratio of 11.92 is a compelling feature. Analysts expect ITRN EPS to grow by 136% this year. The company is now one of the best small-cap stocks to watch going into the second half of the year.

7. Methode Electronics (NYSE: MEI)

Methode Electronics shares are up more than 30% this year. MEI has a market cap of $1.89 billion making it another small-cap stock that is flying under the radar. The Illinois-based electronic components manufacturer supplies electronic devices to the industrial, automotive, and medical segments of the market. Analysts expect Methode to post earnings growth of 41% this year. Traders can invest in MEI with the company’s exciting forward P/E ratio of 14.42 in mind.

8. Magnachip Semiconductor (NYSE: MX)

Magnachip is a South Korean semiconductor company that supplies analog and mixed-signal semiconductor solutions to the communications industry. MX has a market cap of $1.07 billion, which explains why it too flies under the radar. Fellow Korean semiconductor company TSMC dominates all the headlines. But MX shares are up nearly 72% this year making it one of the top small-cap stocks to watch now. Analysts expect Magnachip earnings to grow by 306% this year, which makes MX stock more compelling to investors.

9. ReneSola (NYSE: SOL)

ReneSola stock is down 28.7% this year after pulling back more than 72% from its February peak. However, the stock has bounced back since last month. The Chinese solar projects developer shares rallied 28.5% between 13th May and 9th June, pushing the SOL market cap to $635 million. This could be a sign of things to come. There is a lot of room to run going into the second half of the year. Analysts expect SOL earnings to grow by 125% this year and 109% next year. The earnings growth catalyst makes ReneSola an exciting small-cap stock to buy.

10. Universal Electronics (Nasdaq: UEIC)

Universal Electronics shares have plunged recently to put the year-to-date rally on hold. UEIC stock plunged more than 20% at the start of May to wipe out the 15% gain made since the start of the year. However, UEIC has bounced back since 13th May and is now up nearly 10% over the last four weeks. The most exciting period is just ahead. Analysts expect Universal Electronics to post 958% EPS growth this year. The stock trades at an attractive forward P/E ratio of just 10.97. UEIC has a market cap of $693 million making it one of the best under-the-radar small-cap stocks to watch.

Why Buy Small-Cap Stocks in June 2021?

Small-cap stocks are affected by overall market conditions, just like any other stock. However, the impact is usually bigger on their total market value because of their smaller size. Therefore, if stock markets plummet, small-cap stocks are likely to fall further. And when markets are in recovery, they also gain more than their blue-chip counterparts.

Global stocks are currently on a recovery amid successful vaccinations against Covid-19. All the leading indices have bounced back. Several stocks have followed the same path. Small caps will gain massively from this rebound. Now seems like the right time to select some compelling small-cap stocks.

The Bottom Line

Investing in small-cap stocks carries risk. Sometimes these can be very volatile compared to mega-cap stocks. Therefore, it is important to diversify properly when buying small-cap stocks. The stocks discussed here represent some of the best small-cap stocks you could consider going into the second half of the year.