If you are seeking growth opportunities, small-cap stocks typically offer the greatest potential. However, there are generally more risks involved with investments at this stage. To find companies that are projected to grow, start with the EPS rate. When an EPS growth rate is high, companies expect to provide greater earnings per share in the near future. Today we have a list of small-cap stocks with EPS rates of 25% or higher for the next year. These companies have also been evaluated by analysts and are listed as 'Strong Buy'. Take a look at what we found to begin your own investigation.
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. Next, we then screened for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We then looked for companies with projected high growth, measured by 1-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these small-cap stocks have strong fundamentals? Use our screened list as a starting point for your own analysis.
1) SciQuest, Inc. (NASDAQ:SQI)
SciQuest, Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 86.36%. The short interest was 3.05% as of 08/15/2012. SciQuest, Inc. offers on-demand strategic procurement and supplier management solutions that enable organizations to efficiently source indirect goods and services, manage their spend and supplier relationships, obtain the benefits of compliance with purchasing policies, and negotiating power with suppliers. Its on-demand strategic procurement and supplier management software suite coupled with the managed supplier network forms an integrated solution.
2) Cynosure, Inc. (NASDAQ:CYNO)
|Industry:||Medical Appliances & Equipment|
Cynosure, Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 40.00%. The short interest was 4.59% as of 08/15/2012. Cynosure, Inc. develops, manufactures, and markets aesthetic treatment systems to the dermatology, plastic surgery, and general medical markets. Its aesthetic treatment systems incorporate a range of laser and other light-based energy sources, including Alexandrite, pulse dye, Nd:Yag, and diode lasers, as well as intense pulsed light. The company's aesthetic treatment systems comprise the Elite product line for hair removal, treatment of facial, and leg veins and pigmentations; the Smartlipo product line for LaserBodySculpting for the removal of unwanted fat; the Cellulaze, SmoothShapes XV, and TriActive product line for the temporary and long-term reduction in the appearance of cellulite; the Affirm/SmartSkin product line for anti-aging applications, such as treatments for wrinkles, skin texture, skin discoloration, and skin tightening; the Cynergy product line for the treatment of vascular lesions; and the Accolade, MedLite C6, and RevLite product line for the removal of benign pigmented lesions, as well as multi-colored tattoos.
3) Calavo Growers Inc. (NASDAQ:CVGW)
Calavo Growers Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 26.43%. The short interest was 13.94% as of 08/15/2012. 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.
4) Oriental Financial Group Inc. (NYSE:OFG)
|Industry:||Money Center Banks|
Oriental Financial Group Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 96.40%. The short interest was 11.54% as of 08/15/2012. Oriental Financial Group Inc., a financial holding company, provides various banking and financial services primarily in Puerto Rico. It operates in three segments: Banking, Wealth Management, and Treasury. The Banking segment offers commercial and consumer lending, saving and time deposit products, financial planning, and corporate and individual trust services.
5) Harvest Natural Resources Inc. (NYSE:HNR)
|Industry:||Independent Oil & Gas|
Harvest Natural Resources Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 242.86%. The short interest was 18.16% as of 08/15/2012. Harvest Natural Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, production, and disposition of oil and natural gas properties. It primarily holds interests in the Bolivarian Republic of Venezuela; exploration acreage, including in onshore of West Sulawesi, Indonesia; offshore of Gabon; in onshore of Oman; and in offshore of the People's Republic of China.
6) NQ Mobile Inc. (NQ)
NQ Mobile Inc. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 58.33%. The short interest was 4.02% as of 08/15/2012. NQ Mobile Inc. operates as a provider of mobile Internet services focusing on security, privacy, and productivity worldwide. It provides a suite of mobile Internet services that protect mobile users from security threats and enhance their productivity. The company offers mobile security services, including mobile malware scanning, Internet firewall, account and communication safety, anti-theft, performance optimization, hostile software rating and reporting, and other services to protect users from mobile malware threats, data theft, and privacy intrusion.
7) Retalix Ltd. (NASDAQ:RTLX)
Retalix Ltd. has Analysts' Rating of 1.50 and a 1-Year Projected Earnings Per Share Growth Rate of 31.76%. The short interest was 0.02% as of 08/15/2012. Retalix Ltd. provides enterprise-wide software solutions to food and fuel retailers, and grocery, convenience store, and foodservice distributors worldwide. It offers in-store solutions/applications supporting customer service points, such as regular checkout, self-service kiosk, self-scanning and self-checkout, in-store operational and management tools for point of sale, front-office and back-office operations, and enable in-store personnel to use mobile computing devices. The company also provides enterprise headquarters solutions to centralize operation and management of enterprise-wide and back-office activities, such as product and price planning and management, promotions, merchandising, inventory management, direct store delivery management, receiving and ordering, reporting and analysis, and customer relationship management tools.
*Company profiles were sourced from Google Finance and Yahoo Finance. 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.