Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. Are you looking for small-caps? Interested in gaining exposure to services companies? Do you prefer high-growth stocks? Do you prefer stocks that analysts rate as 'Buy'? For ideas on how to start your search, we ran a screen you may find helpful.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for small cap services stocks. From here, we then looked for companies that have high future earnings per share growth forecasts(5-year projected EPS Growth Rate>25%). Next, we then screened for businesses that analysts rate as "Buy" (1 < mean recommendation < 3).
Do you think these small-cap stocks have a strong outlook? Please use our list to assist with your own analysis.
1) Bebe Stores, Inc. (NASDAQ:BEBE)
Bebe Stores, Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 30.00% and Analysts' Rating of 1.70. The short interest was 4.41% as of 05/03/2012. bebe stores, inc. engages in the design, development, and production of women's apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman.
2) Constant Contact, Inc. (NASDAQ:CTCT)
Constant Contact, Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 37.20% and Analysts' Rating of 2.10. The short interest was 27.30% as of 05/03/2012. Constant Contact, Inc. provides on-demand email marketing, social media marketing, event marketing, and online survey products primarily in the United States. It offers email marketing products, which allow customers to create, send, and track professional and affordable permission-based email marketing campaigns; and social media marketing products that allow customers to manage and optimize their presence across multiple social media networks. The company also provides event marketing products, which enable its customers to promote and manage events, communicate with invitees and registrants, capture and track registrations, and collect online payments; and online survey products that enable its customers to create and send surveys, and analyze the responses.
3) Acacia Research Corporation (NASDAQ:ACTG)
Acacia Research Corporation has a 5-Year Projected Earnings Per Share Growth Rate of 36.60% and Analysts' Rating of 2.00. The short interest was 4.57% as of 05/03/2012. Acacia Research Corporation, through its subsidiaries, acquires, develops, licenses, and enforces patented technologies in the United States. It assists patent owners with the prosecution and development of their patent portfolios; protection of their patented inventions from unauthorized use; generation of licensing revenue from users of their patented technologies; and enforcement against unauthorized users of their patented technologies. The company owns or controls the rights to approximately 200 patent portfolios, which include the United State's patents and foreign counterparts covering technologies used in various industries.
4) Echo Global Logistics, Inc. (NASDAQ:ECHO)
Echo Global Logistics, Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 31.60% and Analysts' Rating of 1.90. The short interest was 11.60% as of 05/03/2012. Echo Global Logistics, Inc. provides technology-enabled transportation and supply chain management services in the United States. Its Web-based technology platform compiles and analyzes data from its network of approximately 24,000 transportation providers to serve clients' shipping and freight management needs. The company offers services across various transportation modes, including truckload, less-than truck-load, small parcel, inter-modal, domestic air, expedited, and international.
5) CoStar Group Inc. (NASDAQ:CSGP)
CoStar Group Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 38.40% and Analysts' Rating of 2.30. The short interest was 8.43% as of 05/03/2012. CoStar Group, Inc. provides information and analytic services to the commercial real estate industry in the United States, the United Kingdom, and France. Its services include CoStar Property Professional service that offers inventory of office, industrial, retail, and multifamily properties and land; CoStar COMPS Professional, which provides coverage of comparable sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStarGo, an iPad application that integrates its property, tenant, and comparable sales information; and CoStar Showcase to get their for-sale and for-lease listings in front of an Internet audience. The company's services also comprise CoStar Advertising to market a space for lease or a property for sale directly to the individuals; CoStar Market Report; CoStar Property Express and CoStar Listings Express to look up and search for-lease and for-sale listings in CoStar's database; CoStar Connect; CoStar Professional Directory; and Metropolis service that combines commercial real estate data from various information providers into a resource.
6) DXP Enterprises, Inc. (NASDAQ:DXPE)
|Industry:||Industrial Equipment Wholesale|
DXP Enterprises, Inc. has a 5-Year Projected Earnings Per Share Growth Rate of 25.80% and Analysts' Rating of 1.60. The short interest was 3.71% as of 05/03/2012. DXP Enterprises, Inc. engages in distributing maintenance, repair, and operating (NYSE:MRO) products, equipment, and services to industrial customers in the United States. Its Service Centers segment provides MRO products, equipment and services, including technical design expertise and logistics capabilities to industrial customers with the ability to provide same day delivery. This segment's product categories comprise rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply, and safety products; and services consist of field safety supervision, in-house and field repair, and maintenance services.
Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.