Small-cap stocks can offer investors huge growth potential, but can also add new levels of risk to their portfolios. One strategy for containing that risk is to search out small caps that won't stay so small for much longer - we mean those that are projected for growth over the long term. With this in mind, we focused today on small caps that not only have strong growth projections, but that analysts also strongly endorse. We arrived at a short list of stocks that warrant more research.
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. We then looked for companies that analysts rate as "Strong Buy" (mean recommendation < 2). Next, we then screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these small-cap stocks will break through to new highs? Please use our list to assist with your own analysis.
1) BioScrip Inc. (BIOS)
BioScrip Inc. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 309.09%. The short interest was 4.08% as of 07/10/2012. BioScrip, Inc. provides pharmacy and home health services in the United States. Its Infusion/Home Health Services segment offers home infusion services that include the intravenous administration of medications to treat various acute and chronic conditions, such as infections, nutritional deficiencies, immunologic and neurologic conditions, cancer, pain, and palliative care; and home infusion therapies comprising parenteral nutrition, enteral nutrition, antimicrobial therapy, chemotherapy, immune globulin therapy, pain management, hemophilia, and respiratory therapy/home medical equipment.
2) Synutra International Inc. (SYUT)
Synutra International Inc. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 27.00%. The short interest was 7.68% as of 07/10/2012. Synutra International, Inc., through its subsidiaries, engages in the production, marketing, and distribution of dairy based nutritional products primarily under the Shengyuan or Synutra name in the People's Republic of China. The company offers powdered infant and adult formula products for adults and children under the Super, U-Smart, My Angel, Mingshan, and Helanruniu brand names; prepared baby food for babies and children under the Huiliduo brand name; and nutritional ingredients and supplements, such as chondroitin sulfate, microencapsulated docosahexanoic acid, and arachidonic acid. It also sells milk powder, whey protein, and raw milk to industrial customers.
3) magicJack VocalTec Ltd. (CALL)
|Industry:||Telecom Services - Domestic|
magicJack VocalTec Ltd. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 32.35%. The short interest was 28.39% as of 07/10/2012. magicJack VocalTec Ltd. provides voice over Internet protocol services over various platforms. It also offers magicJack, a competitive local exchange carrier. The company was formerly known as VocalTec Communications Ltd.
4) Newport Corp. (NEWP)
|Industry:||Scientific & Technical Instruments|
Newport Corp. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 48.31%. The short interest was 3.81% as of 07/10/2012. Newport Corporation and its subsidiaries provide technology products and systems to scientific research, microelectronics, aerospace and defense/security, life and health sciences, and industrial markets in the United States, Europe, and the Pacific Rim. The company operates in three divisions: Photonics and Precision Technologies (PPT), Lasers, and Ophir. The PPT division provides photonics instruments and systems; vibration isolation systems and subsystems; precision positioning devices, systems, and subsystems; optics and optical hardware; opto-mechanical subassemblies and subsystems; and advanced manufacturing systems. It also offers automated systems for various applications in the manufacture of solar panels, and communications and electronic devices, including microwave, optical, radio frequency, and multi-chip modules.
5) Calavo Growers Inc. (CVGW)
Calavo Growers Inc. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 26.24%. The short interest was 13.77% as of 07/10/2012. Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable commodities, as well as manufactures and distributes processed avocado products in the United States and internationally. The company's Fresh Products segment grades, sizes, packs, cools, and ripens avocados for delivery to the customers; and procures avocados grown in Chile, Mexico, and Peru, as well as various other perishable commodities, including tomatoes, papayas, and pineapples. Its Calavo Foods segment procures and processes avocados into various guacamole products, and distributes the processed products to customers.
6) Powell Industries, Inc. (POWL)
|Industry:||Industrial Electrical Equipment|
Powell Industries, Inc. has an Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 57.64%. The short interest was 3.76% as of 07/10/2012. Powell Industries, Inc. engages in the design, development, manufacture, and servicing of custom engineered-to-order equipment and systems for the management and control of electrical energy and other critical processes in transportation, environmental, energy, industrial, and utility industries. The company operates in two segments, Electrical Power Products and Process Control Systems. The Electrical Power Products segment offers electrical power distribution and control systems that are used to distribute, monitor, and control the flow of electrical energy, as well as to provide protection to motors, transformers, and other electrically-powered equipment.
7) SJW Corp. (SJW)
SJW Corp. has a Analysts' Rating of 1.50, and a 1-Year Projected Earnings Per Share Growth Rate of 34.34%. The short interest was 3.60% as of 07/10/2012. SJW Corp., through its subsidiaries, engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. The company also provides non-regulated water related services, including water system operations, maintenance agreements, and antenna leases. Its water supply consists of groundwater from wells, surface water from watershed run-off and diversion, and imported water purchased from the Santa Clara Valley Water District.
*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.