This Small-Cap Gem Could Be the Next 10-Bagger

UFP Technologies (NASDAQ: UFPT) is proof that niche-leading stocks remain a great stocked pond for investors to fish in when looking for multibaggers. UFP is a contract development and manufacturing organization focused on designing and making custom, single-use, polymer-based medical devices and packaging.While this may sound somewhat unassuming, the stock's results have been brilliant. Over the last decade, UFP has been a 12-bagger, and since its initial public offering in 1993, the stock has been a 44-bagger. Despite this incredible run, UFP's market cap remains only $2 billion -- and that makes it my favorite small-cap gem with 10-bagger potential.While UFP may be a small cap, it counts 26 of the 30 top medical original equipment manufacturers (OEMs) as customers. The company works alongside these OEMs, handpicking which product ideas it would like to develop, prototype, and manufacture with its equipment. The beauty of this model is that UFP can choose the highest-margin opportunities to pursue. Thanks to UFP's exclusive access to several medical-grade specialty materials and numerous patents, the OEMs are incentivized to make a reasonable offer or risk not finding a great alternative.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool