Though common sense tells us to load up on securities with established track records, the concept of Nasdaq small-cap stocks to buy invariably delivers enticement. To be sure, there’s nothing wrong with riding the blue chips to a secure future. It’s just that such rides tend to take a long time to get going. For those on a shorter timeframe, you may want to consider the top Nasdaq small-cap performers.

To be 100% upfront, if you want to engage the best small-cap stocks on Nasdaq, you should only do so with pocket change. Obviously, the main reason why is for your protection. Like it or not, these securities feature high beta or volatility. So yes, you can make money but the amount of cash you can lose is startling.

Another factor to consider centers on the math. Basically, because the entities commonly described as Nasdaq small-cap growth stocks 2023 command significant mobility, you don’t need to fork over so much cash to see massive returns. If you can handle the heat, the below ideas may appease speculators.

Pulmonx (LUNG)

Headquartered in Redwood City, California, Pulmonx (NASDAQ:LUNG) helps patients breathe easier with its Zephyr Valve technology. Through the medical device, patients experience improved health status, lung function and increased exercise capacity. Also, the device improves quality of life through reduced breathlessness or dyspnea and reduced gas trapping. Notably, the market responded positively to LUNG stock, sending it up 56% since the Jan. opener.

Though it’s one of the top-performing Nasdaq small-cap stocks, Pulmonx features a mixed bag in the financials. On the positive side, it benefits from a robust balance sheet. Primarily, its cash-to-debt ratio pings at 5.78, above 60% of companies listed in the medical devices industry. Also, its equity-to-asset ratio stands at 0.8, outflanking over 73% of its peers.

However, Pulmonx is an aspirational entity, incurring a three-year revenue growth rate of 2.8% below breakeven. Also, its profit margins sit deeply in negative territory. Still, analysts overall believe it’s one of the best small-cap stocks on Nasdaq, rating it a consensus strong buy. Also, their average price target comes out to $14.75, implying over 26% upside potential.

The Hackett Group (HCKT)

Founded in 1991, The Hackett Group (NASDAQ:HCKT) bills itself as the digital gateway to measure performance excellence, accelerate business transformation and uncover breakthrough business insights. Essentially, it serves as a market intelligence specialist, helping its enterprise-level clients to maximize their potential. Unfortunately for longtime stakeholders, the market doesn’t seem interest, sending HCKT down 12% since the start of the year.

Nevertheless, it’s possible that HCKT may rise to become one of the top Nasdaq small-cap stocks to buy. Overall, Hackett brings solid financial metrics to the table. On the balance sheet, the company’s Altman Z-Score pings at 5.38, indicating high fiscal stability and low risk of bankruptcy. For profitability, Hackett’s net margin is 13.89%, outpacing nearly 85% of its peers in the software industry.

Enticingly, the market prices HCKT at a forward multiple of 10.8. As a discount to projected earnings, Hackett ranks better than 87.71% of the competition. Lastly, analysts peg HCKT as a consensus moderate buy. Their average price target hits $24.50, implying 34% upside potential.

nLight (LASR)

Based in Washington, nLight (NASDAQ:LASR) claims to have revolutionized laser technology. Structured as a vertically integrated corporation, nLight supplies high-power semiconductor lasers and fiber lasers for industrial, microfabrication and aerospace and defense applications. Presently, the company carries a market capitalization of $393.8 million. Since the Jan. opener, LASR slipped 18%, which isn’t exactly encouraging.

Nevertheless, patient investors may consider LASR as one of the Nasdaq small-cap stocks to buy. First, nLight delivers exceptional industry relevancies. Second, the enterprise enjoys the confidence of a stout balance sheet. Its cash-to-debt ratio pings at 6.93, above 67.2% of its rivals. And its equity-to-asset ratio comes out to 0.82, above 80.34% of sector players.

That said, investors should realize that its profit margins on a trailing-year basis fell into negative territory. As well, its free cash flow (FCF) growth in the past three years slipped to 19.2% below breakeven. Still, analysts believe it has the potential to be one of the top Nasdaq small-cap performers, pegging LASR a moderate buy. Their average price target stands at $12, implying nearly 40% upside potential.

Gambling.com (GAMB)

Founded in 2006, Gambling.com (NASDAQ:GAMB) ranks among the more controversial examples of Nasdaq small-cap stocks. However, as a performance marketing and sports betting media company, Gambling.com commands exceptional potential.

According to Grand View Research, the global sports betting market reached a valuation of $83.65 billion last year. Experts project that the sector will expand at a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. At the culmination of the forecasted period, the industry may command revenue of $182.12 billion. Considering that Gambling.com only has a market cap of $370 million, GAMB getting a small slice could yield big results.

While GAMB isn’t technically one of the Nasdaq penny stocks to watch now, its chart mobility gives off similar vibes. In the trailing year, shares gained over 35% of equity value. What’s more, the underlying financial profile isn’t too shabby. Featuring a stout balance sheet and strong revenue growth, Gambling.com overall enjoys above-average profitability. Turning to Wall Street, analysts peg GAMB a consensus moderate buy. Their average price target stands at $14.50, implying over 41% upside potential.

Solid Power (SLDP)

Based in Louisville, Colorado, Solid Power (NASDAQ:SLDP) represents a highly risky example of Nasdaq small-cap stocks to buy. At the same time, the company enjoys significant upside potential if it fires on all cylinders. Focused on building a new breed of battery, Solid Power aims to deliver a platform that’s safer, offer higher energy density and cost less than traditional lithium-ion batteries.

Now, the issue of course is that battery tech companies have been promising much and delivering relatively little. Since the January opener, SLDP slipped more than 5%. But the narrative gets really ugly in the past 365 days, with shares hemorrhaging almost 73% of equity value. Some of the fears have a fundamental basis, particularly Solid Power’s deeply negative profit margins.

On the other hand, the company benefits from an excellent cash-to-debt ratio of 32.14. As well, its Altman Z-Score reached 6.86, indicating fiscal resilience. Looking to the Street, analysts peg SLDP as a consensus moderate buy. Their average price target comes out to $4, implying over 78% upside potential.

Hudson Technologies (HDSN)

Headquartered in Pearl River, New York, Hudson Technologies (NASDAQ:HDSN) is a clean-environment-focused enterprise that commits to providing products and services that reduce greenhouse gas emissions, increase energy efficiency and promote sustainability. Therefore, it’s one of the environmental, social and governance trades among the Nasdaq small-cap stocks. However, Hudson has some product/service evangelism to do, with shares stumbling almost 23% since the Jan. opener.

However, it’s also fair to point out that in the trailing one-year period, HDSN gained more than 18% of equity value. Moreover, Hudson’s financials make it worth consideration among top Nasdaq small-cap performers. Up top, the company features a solid balance sheet, backed by a healthy Altman Z-Score of 5.93.

Operationally, Hudson commands a three-year revenue growth rate of 22%, above 84.35% of firms in the chemicals industry. As well, its net margin impresses at a sterling 31.92%. Lastly, analysts peg HDSN as a consensus moderate buy. Their average price target comes out to $14, implying over 85% upside potential.

Zynex (ZYXI)

A medical device manufacturer, Zynex (NASDAQ:ZYXI) produces and markets electrotherapy devices for use in pain management, physical rehabilitation, neurological diagnosis and cardiac monitoring. Although a relevant enterprise among Nasdaq small-cap stocks, the rest of the market needs convincing. Since the start of this year, ZYXI fell nearly 20%. However, in the past one-year period, it popped up over 60%.

On the financial side, Zynex should intrigue some passersby. Notably, the company benefits from a strong balance sheet. Specifically, its equity-to-asset ratio pings at 0.57, above 71.08% of companies listed in the medical distribution industry. Also, its Altman Z-Score comes in at 7.87, indicating high fiscal stability and low bankruptcy risk.

Operationally, Zynex’s three-year revenue growth rate stands at 49.2%, smoking 97.4% of rivals. Additionally, its net margin impresses at 10.78%.

On a final note, analysts peg ZYXI as a consensus moderate buy. Their average price target hits $24, implying over 115% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.