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, you'll need to do your own research before you decide to buy.
Interested in following smaller companies? Interested in gaining exposure to consumer companies? Do you prefer stocks that are projected to grow over the next year? Do you prefer stocks that analysts rate as 'Strong Buy'? If so, here are some ideas to get you started on your search.
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 consumer stocks. Next, we then screened for businesses with estimated high-growth, with 1-year projected EPS growth above 25%. We then looked for companies that analysts rate as "Strong Buy" (mean recommendation < 2).
Do you think these small-cap stocks should be priced higher? Use our list along with your own analysis.
1) Ennis Inc. (NYSE:EBF)
Ennis Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 67.91%, and a Analysts' Rating of 1.00. The short interest was 2.85% as of 06/10/2012. Ennis, Inc., together with its subsidiaries, engages in the print and manufacture of business forms and other business products. The company operates in two segments, Print and Apparel. The Print segment designs, manufactures, and sells business forms and other printed business products.
2) Black Diamond, Inc. (BDE)
Black Diamond, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 60.00%, and a Analysts' Rating of 1.40. The short interest was 5.54% as of 06/10/2012. Black Diamond, Inc., together with its subsidiaries, engages in designing, manufacturing, and marketing outdoor performance products for climbing, mountaineering, backpacking, skiing, and other outdoor recreation activities in the United States and internationally. It provides climbing products, including belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice and rock protection devices, and various other climbing accessories; and skiing products comprising backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. The company also offers mountaineering line products, such as mountaineering backpacks for alpine expeditions; backpacks for backcountry excursions, overnight trips, and day hikes; and lifestyle packs, travel luggage, bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles, and various other hiking and mountaineering accessories.
3) Movado Group, Inc. (NYSE:MOV)
|Industry:||Recreational Goods, Other|
Movado Group, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 32.26%, and a Analysts' Rating of 1.00. The short interest was 7.56% as of 06/10/2012. Movado Group, Inc. designs, sources, markets, and distributes fine watches. It offers its watches under the Movado, Ebel, Concord, ESQ by Movado, Coach, HUGO BOSS, Juicy Couture, Tommy Hilfiger, Lacoste, and Ferrari brands. The company is also involved in the after-sales service activities and shipping.
4) Wabash National Corp. (NYSE:WNC)
|Industry:||Trucks & Other Vehicles|
Wabash National Corp. has a 1-Year Projected Earnings Per Share Growth Rate of 77.53%, and a Analysts' Rating of 1.40. The short interest was 18.02% as of 06/10/2012. Wabash National Corporation engages in designing, manufacturing, and marketing standard and customized truck trailers, intermodal equipment, and transportation related products in North America. It operates in three segments: Commercial Trailer Products, Diversified Products, and Retail. The Commercial Trailer Products segment manufactures truck trailers; proprietary composite products; dry van trailers; standardized sheet and post, and refrigerated trailer products; and steel and aluminum flatbed, and dropdeck trailers. This segment markets its transportation equipment under the Wabash, DuraPlate, DuraPlateHD, DuraPlate XD-35, FreightPro, ArcticLite, RoadRailer, Transcraft, Eagle, Eagle II, D-Eagle, and Benson trademarks directly to customers, as well as through independent dealers and company-owned retail branch network.
5) Synutra International Inc. (NASDAQ:SYUT)
Synutra International Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 179.41%, and a Analysts' Rating of 1.50. The short interest was 7.47% as of 06/10/2012. Synutra International, Inc., through its subsidiaries, engages in the production, marketing, and distribution of dairy based nutritional products primarily 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.
6) Steelcase Inc. (NYSE:SCS)
Steelcase Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 33.78%, and a Analysts' Rating of 1.50. The short interest was 2.87% as of 06/10/2012. Steelcase Inc. designs, manufactures, and distributes furniture systems and seating products, user-centered technologies, and interior architectural products primarily in North America, Europe, and Asia. Its furniture systems portfolio consists of panel-based and freestanding furniture systems; and complementary products, such as storage, tables, and ergonomic worktools. The company also provides seating products, including ergonomic chairs; seating for collaborative or casual settings; and specialty seating for specific markets comprising healthcare and education.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.