Hunting for good small cap investments is always an interesting activity. Small cap stocks tend to offer investors greater growth opportunities than larger alternatives, although this comes with its fair share of added risk.
One strategy for picking good small caps is to look for companies that have solid fundamentals, often indicated by having strong positive ratings from analysts. If you're looking for stocks that fit this category, you might like what we've put in our list. Remember, just because analysts like these stocks does not mean you will not need to do your own research before you decide to buy.
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 stocks with a very high yield (more than 5%). From here, we then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We next screened for businesses that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We did not screen out any sectors.
Do you think these small-cap stocks are worth more than the market currently says? Use our list along with your own analysis.
1) Inergy Midstream LLC (NRGM)
|Industry:||Oil & Gas Pipelines|
Inergy Midstream LLC has a Dividend Yield of 7.36%, a Payout Ratio of 0.00%, an Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 59.70%. The short interest was 0.54% as of 06/13/2012. Inergy Midstream, L.P. engages in acquiring, owning, developing, and operating midstream energy assets.
2) Capital Product Partners L.P. (NASDAQ:CPLP)
Capital Product Partners L.P. has a Dividend Yield of 13.10%, a Payout Ratio of 59.08%, an Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 81.82%. The short interest was 0.51% as of 06/13/2012. Capital Product Partners L.P., a shipping company, provides seaborne transportation services of crude oil, refined petroleum products, edible oils, and soft chemicals.
The company provides marine transportation services under short-term voyage charters and medium to long-term time and bareboat charters. Its vessels carry crude oil, and refined oil products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals comprising ethanol.
3) Breitburn Energy Partners L.P. (BBEP)
|Industry:||Oil & Gas Drilling & Exploration|
Breitburn Energy Partners L.P. has a Dividend Yield of 10.70%, a Payout Ratio of 68.74%, an Analysts' Rating of 1.60, and a 1-Year Projected Earnings Per Share Growth Rate of 103.03%. The short interest was 0.73% as of 06/13/2012. BreitBurn Energy Partners L.P. engages in the acquisition, exploitation, and development of oil and gas properties in the United States.
The company's properties include natural gas, oil, and midstream assets comprising fields in the Antrim Shale in Michigan, and the New Albany Shale in Indiana and Kentucky; and fields in the Evanston and Green River basins in southwestern Wyoming, the Wind river and Big Horn basins in central Wyoming, the Powder River basin in eastern Wyoming, the Los Angeles basin in California, and fields in Florida's Sunniland Trend. As of December 31, 2011, its total estimated proved reserves were 151.
4) Costamare Inc. (NYSE:CMRE)
Costamare Inc. has a Dividend Yield of 8.35%, a Payout Ratio of 68.74%, an Analysts' Rating of 1.80, and a 1-Year Projected Earnings Per Share Growth Rate of 33.08%. The short interest was 2.98% as of 06/13/2012. Costamare, Inc. owns and charters containerships to liner companies. Its fleet consists of 56 containerships with a total capacity of approximately 324,000 TEU. The company was founded in 1975 and is based in Athens, Greece.
5) NGL Energy Partners LP (NYSE:NGL)
|Industry:||Oil & Gas Refining & Marketing|
NGL Energy Partners LP has a Dividend Yield of 6.43%, a Payout Ratio of 0.00%, an Analysts' Rating of 1.30, and a 1-Year Projected Earnings Per Share Growth Rate of 104.69%. The short interest was 0.03% as of 06/13/2012. NGL Energy Partners LP, through its subsidiaries, operates as a vertically-integrated energy company in the United States.
The company operates in three segments: Midstream, Wholesale Supply and Marketing, and Retail Propane. The Midstream segment involves in the delivery of propane from pipelines or trucks to propane terminals and transfers the propane to third-party transport trucks for delivery to retailers, wholesalers, or other consumers in Illinois, Missouri, and New York.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.