3 Small Caps Growing Earnings Fast

Wall Street analysts predict they will continue to beat the US market

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Investors looking for growth may be interested in the following trio of small-cap stocks, as their earnings per share (EPS) grew by more than 25% in the past 12 months. Wall Street analysts also expect these stocks to outperform the S&P 500 significantly in terms of EPS growth over the next five years, resulting in positive recommendation ratings.

Evoqua Water Technologies Corp

The first company that meets the above-listed criteria is Evoqua Water Technologies Corp (AQUA, Financial), a Pittsburgh, Pennsylvania-based provider of water and wastewater treatment systems and emergency water supply solutions to companies and public organizations. The stock has a market capitalization of about $1.94 billion.

Evoqua Water Technologies grew its trailing 12-month EPS without NRI to a profit of 49 cents as of the first quarter of fiscal 2020, up from a loss of 7 cents for the first quarter of fiscal 2019.

Wall Street sell-side analysts forecast that the company will continue to grow its EPS by 15% per annum over the next five years versus the S&P 500's 5% growth rate.

As of April, one analyst recommends a strong buy rating, three analysts recommend a buy rating and four analysts recommend a hold rating for this stock.

Evoqua Water Technologies’ share price ($16.65 as of April 28) increased by 22.3% in the past year, determining a 52-week range of $7.09 to $25.23.

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Evoqua Water Technologies does not pay dividends.

SPX FLOW Inc

The second company that meets the above-listed criteria is SPX FLOW Inc (FLOW, Financial), a Charlotte, North Carolina-based global provider of various engineered solutions for companies operating in the food and beverage industry and the industrial sector. The stock has a market capitalization of about $1.39 billion.

SPX FLOW was able to grow its trailing 12-month EPS without NRI to $1.29 per diluted share in full-year 2019, up from 22 cents per diluted share in 2018.

Wall Street sell-side analysts forecast that SPX FLOW will continue to grow the EPS by 9.45% per annum over the next five years.

As of April, the stock has two strong buy, three buy, three hold and two underperform ratings from Wall Street.

The share price ($32.5 as of April 28) rose by nearly 10% in the past year for a 52 week range of $15.74 to $49.94.

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SPX FLOW Inc does not pay dividends.

OSI Systems Inc

The third company that meets the above-listed criteria is OSI Systems Inc (OSIS, Financial), a Hawthorne, California-based manufacturer and seller of electronic components for healthcare, manufacturing, optoelectronics and security industries. The stock has a market capitalization of $1.35 billion.

OSI Systems saw its trailing 12-month EPS without NRI grow by 115.5% in the past year to $4.16 as of the second quarter of fiscal 2020, up from $1.93 as of the second quarter of fiscal 2019.

Wall Street sell-side analysts forecast that the EPS of the company will keep on growing by 17.5% per annum over the next five years.

As of April, two analysts recommend a strong buy rating and four analysts recommend a buy rating for this stock.

The share price ($73.67 as of April 28) decreased by 18.3% in the past year, determining a 52-week range of $49.96 to $117.21.

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OSI Systems Inc does not pay dividends.

Disclosure: I have no positions in any securities mentioned in this article.

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