6 Liquid Small Caps With EPS Growth Projections Above 25%

by: ZetaKap

In business and in life, one way to safeguard from those unexpected and costly events is to have a cash reserve. It can be a life saver, especially at the small cap level where companies tend to be less established. For our list today we found small cap stocks that have strong liquidity. Not only that, but they have EPS growth rates above 25% for the coming year. If needed, those cash reserves will come in handy to keep the growth on a steady upward trend. We think you will find our list of small cap stocks worthy of a deeper look.

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.

The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

We first looked for small cap stocks. We then screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. From here, we then looked for companies that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any sectors.

Do you think these small-cap stocks will perform well? Use our list along with your own analysis.

1) RF Micro Devices Inc. (RFMD)

Sector Technology
Industry Semiconductor - Integrated Circuits
Market Cap $1.04B
Beta 2.30
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RFMD stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 242.86%
Current Ratio 4.05
Quick Ratio 3.06
Short Interest 6.80%
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RF Micro Devices, Inc. designs, develops, manufactures, and markets radio frequency components and compound semiconductor technologies primarily in the United States and Asia. Its products enable mobility, as well as provide connectivity and support functionality in the mobile devices, wireless infrastructure, wireless local area networks, cable television /broadband, Smart Energy/advanced metering infrastructure, and aerospace and defense markets. The company offers products that range from single-function components to highly integrated circuits and multi-chip module. The company markets its products to original equipment manufacturers and original design manufacturers. RF Micro Devices, Inc. was founded in 1991 and is headquartered in Greensboro, North Carolina.

2) Imperva Inc. (NYSE:IMPV)

Sector Technology
Industry Application Software
Market Cap $727.13M
Beta -
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IMPV stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 358.30%
Current Ratio 3.14
Quick Ratio 3.13
Short Interest 12.59%
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Imperva, Inc. engages in the development, marketing, sales, service, and support of data security solutions that provide visibility and control over high value business data across critical systems within the data center. It offers SecureSphere Data Security Suite, a solution designed to prioritize and mitigate risks to high-value business data, protect against hackers and malicious insiders, and address and streamline regulatory compliance.

The company's SecureSphere is an integrated, modular suite offering database security products designed to secure business data in structured repositories in the data center; file security products designed to secure files, including spreadsheets, presentation slides, word processing documents, and PDFs containing business data stored by customers in unstructured repositories, such as file servers, network attached storage, and storage area network devices; and Web application firewall product that protects Web applications from cyber attacks and adapts to evolving threats to prevent data breaches.

Imperva, Inc. provides its products and services to a range of customers, including banks, retailers, insurers, technology and telecommunication companies, and hospitals, as well as national, state, and local government agencies worldwide. The company was formerly known as WebCohort Inc. and changed its name to Imperva, Inc. in February 2004. Imperva, Inc. was founded in 2002 and is headquartered in Redwood Shores, California.

3) International Rectifier Corporation (NYSE:IRF)

Sector Technology
Industry Semiconductor - Integrated Circuits
Market Cap $1.21B
Beta 1.56
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IRF stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 745.45%
Current Ratio 4.07
Quick Ratio 2.69
Short Interest 5.86%
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International Rectifier Corporation engages in the design, manufacture, and marketing of power management semiconductors in the United States, Europe, and Asia. The company's Power Management segment offers power metal oxide semiconductor field effect transistors (MOSFET), and DirectFET products for power supply, data processing, telecommunications, industrial, and commercial battery-powered system applications.

Its Energy Saving Products segment offers high voltage analog and mixed signal integrated circuits, and insulated gate bipolar transistors platforms; digital control ICs; and IRAM integrated power modules for applications in motor control appliances, industrial automation, lighting and display, audio, and video.

International Rectifier Corporation's Automotive Products segment provides automotive qualified HVICs; intelligent power switch ICs; and power MOSFETs, including DirectFET and IGBTs. Its Enterprise Power segment offers DirectFET discrete products, digital controllers, power monitoring products, voltage regulators, low voltage ICs, and PowIRstages for applications in servers, storage, routers, switches, infrastructure equipment, notebooks, graphic cards, and gaming counsels.

The company's HiRel segment offers radiation-resistant (RAD-Hard) discretes, RAD-Hard ICs, power management modules, DC-DC converters, and other power components for applications in satellites and space exploration vehicles, and military hardware, commercial aircraft, undersea telecommunications, and oil drilling, as well as for products used in biomedical applications. Its Intellectual Property segment involves in sale and/or licensing of technologies and manufacturing process know-how. The company's customers include distributors, original equipment manufacturers, and contract manufacturers. International Rectifier Corporation was founded in 1947 and is headquartered in El Segundo, California.

4) GasLog Ltd. (NYSE:GLOG)

Sector Services
Industry Shipping
Market Cap $710.32M
Beta -
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GLOG stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 288.20%
Current Ratio 7.84
Quick Ratio 7.83
Short Interest 4.48%
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GasLog Ltd. operates in the gas shipping and the marine gas sector. It provides short, medium, and long term logistical solutions to gas companies. The company was incorporated in 2003 and is based in Monaco, Monaco.

5) Lattice Semiconductor Corporation (NASDAQ:LSCC)

Sector Technology
Industry Semiconductor - Specialized
Market Cap $464.71M
Beta 1.75
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LSCC stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 229.40%
Current Ratio 5.81
Quick Ratio 5.08
Short Interest 6.28%
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Lattice Semiconductor Corporation designs, develops, manufactures, and markets programmable logic products and related software. The company offers field programmable gate array (FPGA) products, including LatticeECP products for deployment in wireless infrastructure and wireline access equipment, as well as in video and imaging applications; and LatticeXP products for the security, surveillance, and display markets.

The company sells its products directly to end customers through a network of independent manufacturers' representatives and indirectly through a network of independent sell-in and sell-through distributors. It primarily serves original equipment manufacturers in the communications, computing, consumer, industrial, military, automotive, and medical end markets. The company sells its products in the United States, China, Europe, Japan, Taiwan, rest of Asia, and rest of the Americas. Lattice Semiconductor Corporation was founded in 1983 and is headquartered in Hillsboro, Oregon.

6) Louisiana-Pacific Corp. (NYSE:LPX)

Sector Industrial Goods
Industry Lumber, Wood Production
Market Cap $1.83B
Beta 2.70
Click to enlarge

LPX stock chart

Key Metrics

1-Year Projected Earnings Per Share Growth Rate 3000.00%
Current Ratio 3.49
Quick Ratio 2.70
Short Interest 15.19%
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Louisiana-Pacific Corporation, together with its subsidiaries, engages in manufacturing and distributing building products for new home construction, repair and remodeling, manufactured housing, and light industrial and commercial construction. The company offers its products to retail home centers, manufactured housing and shed producers, distributors, wholesalers, and building materials dealers in North America, South America, Asia, Australia, and Europe. Louisiana-Pacific Corporation was founded in 1972 and is headquartered in Nashville, Tennessee.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 08/30/2012.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.