Recent sharp declines among overvalued large-cap stocks highlight the wisdom of seeking small-caps, which are poised to outperform in 2018. Here’s a look at a quartet of small-cap stars in the Breakthrough Tech Profits portfolio.

The stock market correction in February underscores the danger of investing in large stocks that are overvalued based on unrealistic earnings assumptions. In what’s shaping up to be a tough year ahead, small-cap companies could bring both stability and growth to your portfolio, especially the value-oriented recommendations below.

Typically, small caps are considered riskier. However, bull runs often are propelled by a relatively small number of strong stocks that are “market leaders.” When these stocks begin to falter, it could mean that the rest of the troops will follow. We’ve seen this dynamic in recent weeks.

The correction probably isn’t over. Fears over a trade war flamed anew this week. President Trump signed tariffs on Thursday on steel and aluminum. Investors are spooked by the specter of protectionism.

Trump’s “America First” policies pose a threat to export-dependent giants, but they’d actually benefit U.S. small caps. The majority of these small caps derive the bulk of their sales domestically, which means that trade wars and a strong U.S. dollar tend to hurt them less.

Let’s take a look at four of our small-cap rockets:

• USA Technologies (NSDQ: USAT)

Market cap: $482 million. USAT allows vending machine owners to stop collecting, counting and depositing quarters and dollars. It sells, leases and rents credit and debit card processors linked to a proprietary, Internet-connected payments platform.

Mobile payments is an exploding business; USAT dominates its niche. As opposed to its large-cap peers, USAT enjoys enormous room for growth. How much growth?

The average analyst expectation is that USAT’s year-over-year earnings growth will come in at 200% in the next quarter, 400% for the current year, and 116% next year. My own calculations show that USAT should generate five-year growth of at least 25%, on an annualized basis.

USAT is a buy up to $14.00.

• 22^nd Century Group (NYSE: XXII)

Market cap: $316.32 million. This small biotech company focuses on genetic engineering and plant breeding and is developing a new strain of hemp with zero THC, the main psychoactive compound found in cannabis.

Apart from medical uses, a THC-free plant would have huge ramifications for the industrial hemp industry, which is all but crippled here in the U.S. Hemp is one of the world’s most sustainable and practical basic materials yet has been illegal since 1970.

XXII also is creating genetically engineered tobacco plans with 97% less nicotine than conventional strains. The FDA has made low-nicotine cigarettes a priority.

The average analyst expectation is that XXII’s year-over-year earnings growth will reach 50% in the current quarter, 33.30% in the current year, and 30% next year.

XXII is a buy up to $7.00.

• Immersion (NSDQ: IMMR)

Market cap: $356.7 million. IMMR develops technologies that allow people to interact with various digital products by using their sense of touch.

Immersion remains the leading developer and licensor of touch feedback technology and it has announced partnerships that bode well for future quarters.

BTP portfolio holding Tencent Holdings (OTC: TCEHY) has licensed Immersion’s TouchSense technology to deliver next generation interactive experiences to its mobile applications. Additionally, Tencent also has licensed Immersion technology to incorporate haptics into its Super NBA game.

The average analyst expectation is that IMMR’s year-over-year earnings growth will come in at 550% in the current quarter, 102.70% next quarter, and 239.80% for the current year. My own calculations show that IMMR should generate five-year earnings growth of at least 15%, on an annualized basis.

IMMR is a buy up to $12.00.

• MicroVision (NSDQ: MVIS)

Market cap: $84.5 million. MicroVision’s hefty research and development expeditures will hold the company in good stead. I expect these investments in organic growth to bear fruit in 2018 and beyond.

MVIS develops scanning technology for high-resolution miniature projection, and three-dimensional (3D) sensing and image capture solutions.

The explosive growth in virtual reality/augmented reality (VR/AR) is a multiyear tailwind for MVIS.

The moneymaking opportunities of VR/AR are enormous. Goldman Sachs (NYSE: GS) estimates that the market for VR alone will reach $80 billion by 2025, with the potential for that figure to actually soar much higher to $180 billion.

I’m also heartened by MVIS’ growing footprint in the Internet of Things field, where the company’s interactive display engine meshes mobility display with 3D sensing.

Analyst earnings projections aren’t available for this very small stock, but my own numbers show that MVIS should generate five-year growth of at least 18%, on an annualized basis.

MVIS is a buy up to $3.75.

John Persinos is chief investment strategist of Breakthrough Tech Profits.