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Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. The companies we focused on today are forecasted for growth over the next year, yet their fundamentals indicate that they're undervalued, meaning that now is the time to give them a closer look. The list we came up is a bit diverse, but we think you'll find it interesting.

The Price/Sales ratio is a price-multiple valuation metric used to help identify if a firm is cheap by its twelve month trailing sales numbers. In the most basic terms it let's an investor know how much the investment community is willing to pay for every dollars worth of sales. A firm with a P/S ratio of one or lower would be viewed as cheap because investors are paying $1 or less for every dollars worth of a firm's sales. On the other hand, a firm is generally considered to be expensive when the P/S ratio is above three. These are general guidelines used by the investment community not hard rules to be clear. Price/Sales Ratio = Current Stock Price/Revenue (sales) per Share

The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below "break up" value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for small cap industrial stocks. We then screened for businesses that are trading at a discount (P/S<1)(P/BV<1). From here, we then looked for companies with projected high growth, measured by 1-year projected EPS growth above 25%.

Do you think these small-cap stocks have strong fundamentals? Use this list as a starting-off point for your own analysis.

1) Tutor Perini Corporation (NYSE:TPC)

Sector:Industrial Goods
Industry:Heavy Construction
Market Cap:$557.07M
Beta:1.62

Tutor Perini Corporation has a Price/Sales Ratio of 0.14, a Price/Book Value Ratio of 0.40, and a 1-Year Projected Earnings Per Share Growth Rate of 41.18%. The short interest was 4.10% as of 06/06/2012. Tutor Perini Corporation, together with its subsidiaries, provides diversified general contracting, construction management, and design-build services to private clients and public agencies worldwide. The company operates in four segments: Civil, Building, Specialty Contractors, and Management Services. The Civil segment engages in public works construction activities; and the repair, replacement, and reconstruction of infrastructure.

2) Layne Christensen Co. (NASDAQ:LAYN)

Sector:Industrial Goods
Industry:Heavy Construction
Market Cap:$382.51M
Beta:1.49

Layne Christensen Co. has a Price/Sales Ratio of 0.34, a Price/Book Value Ratio of 0.85, and a 1-Year Projected Earnings Per Share Growth Rate of 28.40%. The short interest was 3.81% as of 06/06/2012. Layne Christensen Company provides drilling, water treatment, and construction services, and related products to water infrastructure and mineral exploration markets. The company's Water Infrastructure division offers a range of water-related products and services, including soil stabilization, hydrological studies, well design, drilling and development, pump installation, sewer rehabilitation, pipeline construction, and well rehabilitation services; and environmental drilling services to assist in assessing, investigating, monitoring, and characterizing water quality and aquifer parameters. This division also provides water treatment equipment engineering services; systems for the treatment of regulated and nuisance contaminants, such as iron, manganese, hydrogen sulfide, arsenic, radium, nitrate, perchlorate, and volatile organic compounds; wastewater pipeline and structure rehabilitation services; and geotechnical construction services to the heavy civil, industrial, and commercial construction markets, as well as designs and constructs water and wastewater treatment plants, and pipeline installations. Its Mineral Exploration division offers exploratory and definitional drilling services for the global mineral exploration industry.

3) General Cable Corp. (NYSE:BGC)

Sector:Industrial Goods
Industry:Industrial Electrical Equipment
Market Cap:$1.44B
Beta:1.95

General Cable Corp. has a Price/Sales Ratio of 0.25, a Price/Book Value Ratio of 0.93, and a 1-Year Projected Earnings Per Share Growth Rate of 28.47%. The short interest was 5.72% as of 06/06/2012. General Cable Corporation engages in the development, design, manufacture, marketing, and distribution of copper, aluminum, and fiber optic wire and cable products for use in the energy, industrial, construction, specialty, and communications markets worldwide. The company offers electric utility products, such as low- and medium-voltage distribution cables; high- and extra-high voltage power transmission cable products; design, integration, and installation services for products, such as high- and extra-high voltage terrestrial and submarine systems; bare overhead conductors; and submarine transmission and distribution cables. It also provides electrical infrastructure products, including jacketed wires and cables, wire sets, and harnesses, as well as industrial power, transit, shipboard, oil and gas, mining, and power generation cables. In addition, the company offers communications industry products comprising high-bandwidth twisted copper and fiber optic, telecommunications exchange and coaxial, networking, and low detection profile cables, as well as submarine networks, submarine cable systems, and offshore integration systems.

4) Griffon Corporation (NYSE:GFF)

Sector:Industrial Goods
Industry:General Building Materials
Market Cap:$508.16M
Beta:1.44

Griffon Corporation has a Price/Sales Ratio of 0.27, a Price/Book Value Ratio of 0.77, and a 1-Year Projected Earnings Per Share Growth Rate of 96.15%. The short interest was 4.43% as of 06/06/2012. Griffon Corporation manufactures home and building, technology related, and plastic products. Its Home & Building Products segment manufactures and markets residential, commercial, and industrial garage doors under the Clopay, America's Favorite Garage Doors, Holmes Garage Door Company, and IDEAL Door names to professional installing dealers and home center retail chains. This segment provides garage doors made primarily from steel, plastic composite, and wood; sells related products, such as garage door openers; and markets commercial sectional doors.

*Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.

Source: 4 Discounted Small Caps Poised For Growth