Small cap companies measured by Russell 2000 index posted an average return of 15% last year despite a lot of volatility in markets over the free trade worries and Trump’s stance on the NAFTA agreement. The Russell 2000 index trades around 1,523 points at present, higher from 1,300 points last year and the index almost doubled in the past five years.

Though the year to date returns of 2.6% from Russell 2000 index was lower than expected, analysts predict that the index will resume the uptrend soon as small-cap domestic companies are unlikely to get the big hit from the trade war between the United States and the rest of the world. Moreover, strong consumer price data, which increased faster in the last five months, lowered traders concerns over reducing economic acceleration.

Noodles & Company

Small-cap companies always have the potential to double investor’s investment in the short period. Noodles & Company (NASDAQ:NDLS) is among those short-cap companies that have generated remarkable share price growth for investors in the last six months.

Noodles share price trades around $7 at present, up 35% in the last three months, extending the six-month rally to 70%.

Analyst Howard Penney sees substantial upside potential in Noodles stock, he thinks the stock could double in price after being named a “New Best Idea Long” by Hedgeye.

Noodles & Co operates and franchises fast-casual restaurants with hundreds of locations in the United States. Close to half of its restaurants are located in one of five states: Colorado, Illinois, Minnesota, Wisconsin, and Virginia.

RLJ Entertainment

RLJ Entertainment (NASDAQ:RLJE) is among the less known names in the small-cap sphere. RLJE share price jumped 109% in the last year alone. The shares of the nano-cap entertainment company are currently trading at around $5 with the market capitalization of $69 million. The global entertainment content distribution company posted revenue growth of 15% in the latest quarter, and its gross margin grew 52% over the past year period.

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Nazir Rostom, Chief Financial Officer of RLJ Entertainment, said, “With a solid balance sheet and clear 2018 priorities, we enter 2018 with strong momentum to deliver another year of growth in revenue, gross margin and bottom-line profitability.”

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