In a market where big companies are getting attention from all quarters, there are some small scale companies that are making the right noises in terms of value- add to investors. These companies are the ideal choices for first time investors because they are not only cheap to hold, but also assure good returns on investment. Here is a look at some of the best small companies that you can invest in right now to get decent returns.
Solar Winds
Solar Winds (SWI, Financial) has been rated one of the best small companies in the US for its impressive business and growth strategies adopted. This is a software services organisation and has been giving serious completion to the giants like Hewlett-Packard (HPQ, Financial) and IBM (IBM, Financial) by offering high quality software services at very affordable rates. Currently the price per share of Solar Winds is $49.82 and the chart below shows that the share prices have been on a continuous increase for the last year of 2014.
In the last five years, sales figures of Solar Winds grew by 40% and profit margins increased by 30% making it one of the best in the industry of providing solutions related to infrastructure of software and software products.
HMS Holdings
HMS Holdings (HMSY, Financial) is a company that deals in checking the correctness of the amount paid out by the healthcare companies in the U.S. During 2010, the U.S. suffered a loss of $70 billion because of incorrect and fraudulent payments made by Medicaid operators. HMS Holdings helps its clients save billions of dollars by correctly checking for the authenticity of payments made by them. Currently they are priced at $20.64 per share and the following is the chart representing the company’s trend for the last year.
Buffalo Wild Wings
Buffalo Wild Wings (BWLD, Financial) is one of those restaurant and sports bar franchises that have been doing quite well, all over the U.S. Currently the brand has 492 franchises and proposes to open at least 631 new units in the near future. Over the last year, same-store sales grew by 5.9% which is an impressive record for any brand. This explains the loyal customer base that Buffalo Wild Wings enjoys. Over the next four years, the growth of Buffalo Wild Wings is expected to grow by close to 15 to 20%. Currently the price per share of Buffalo Wild Wings is $182.8. During the last year, the share price trend can be seen from the chart below.
iRobot Corporation
IRobot Corporation (IRBT, Financial) has been one of the top picks when it comes to the best small-scale companies in the U.S. The company is involved in manufacturing robots for commercial and residential purposes, floor scrubbers and bomb sniffers. All these products have tasted huge success in the market and that has rubbed off in the share prices trend as well as seen from the chart below. Home robots are the most successful product of this company and around 60% of the revenues are contributed by this product alone. Currently the price share of iRobot Corp is $31.99. Due to the steady increase in profits and sales margins, the share prices are expected to touch close to $43 per share.
IPG Photonics Corporation
Although IPG Photonics Corporation (IPGP, Financial) is not a huge company, it manufactures 60% of the optic fibre lasers that are used in the automobiles, electronics and aeroplanes today. The company is one the most respected, because it manufactures high-quality products using lesser energy than most of its counterparts. Growth margins have been quite high for IPG Photonics Corporation over the last few years and hence trade experts believe that it is one of the best stocks to invest in, at the earliest. Currently the price per share of the company is $73.62 and the trend for the last year is seen below:
Conclusion
It is evident from the above information that small companies are here to stay. They require lesser investment and provide greater returns to shareholders. All of these companies have recorded attractive rates of growth in the last year and are all set for promising years ahead.
