Three Small-Cap Stocks with Strong Growth Potential in 2023\n\nSmall-cap stocks offer investors the opportunity to invest in newer companies with niche products and services that have the potential for significant share price appreciation. These stocks also come with higher risk due to their susceptibility to financial instability and economic downturns. We will discuss three small-cap stocks within the Russell 2000 index that have shown strong growth in 2023 and are poised to continue this momentum.\n\nSprouts Farmers Market (SFM) is a food retailer based in Phoenix, Arizona, that specializes in fresh, natural, and organic food products. The company has seen a 34% increase in its share price over the past year, making it one of the top-performing small-cap stocks. This growth can be attributed to share buybacks, new store locations, and improved finances. In its recent earnings report for Q3 2023, Sprouts reported an 8% increase in revenue and repurchased 831,000 shares. The company’s partnership with DoorDash has also contributed to its positive outlook for the future.\n\nImmunoGen (IMGN) is a biotech company located in Waltham, Massachusetts, that produces therapies targeting cancer cells. The company’s share price surged by 83% following the news of its acquisition by AbbVie (ABBV), one of the largest healthcare companies, in a $10 billion all-stock transaction. This acquisition has not only boosted ImmunoGen’s share price but also solidified its position in the market. In its third-quarter earnings report, the company showed a sevenfold increase in total revenue compared to the previous year. This, combined with the acquisition news, has led to a 450% increase in the company’s share price over the past year.\n\nDuolingo (DUOL) is an education service provider based in Pittsburgh, Pennsylvania, that offers language learning courses through its popular mobile app. The company has expanded into other educational areas, such as music and math courses, and has seen its share price triple in 2023. In its recent earnings report, Duolingo announced a 43% increase in total revenue and a 60% growth in paid subscribers and daily active users compared to the previous year. The company also raised its full-year guidance, highlighting its potential for growth.\n\nIn a these three small-cap stocks within the Russell 2000 index have shown strong growth in 2023 and are well-positioned to continue this momentum.