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Alberto Abaterusso
Alberto Abaterusso
Articles (2089) 

A Trio of Small Caps Growing Earnings Fast

Wall Street analysts predict they will grow profits

May 22, 2020 | About:

Investors searching for growth opportunities may want to consider the following small-cap stocks, as their earnings per share (EPS) grew by more than 20% in the past 12 months. Wall Street sell-side analysts also expect these stocks to surpass the S&P 500 in terms of EPS growth over the next five years, producing positive recommendation ratings.

SPX Corp

The first company to consider is SPX Corp (NYSE:SPXC), a Charlotte, North Carolina-based global supplier of HVAC systems and specialty industrial machineries. The stock has a market capitalization of $1.69 billion.

SPX Corp. grew its trailing 12-month EPS without NRI by 22% to $2.85 as of the first quarter of 2020, up from $2.34 for the first quarter of 2019.

Wall Street sell-side analysts predict that the company will continue to grow its EPS by 10% every year over the next five years versus the S&P 500's 4% growth rate. As of May, two analysts recommend a buy rating and two recommend a hold rating for this stock.

SPX Corp.'s share price ($37.87 as of May 21) rose by 26.4% in the past year, determining a 52-week range of $25.50 to $53.76.

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a positive profitability rating of 6 out of 10.

Everi Holdings Inc

The second company to consider is Everi Holdings Inc (NYSE:EVRI), a Las Vegas-based provider of technology solutions for the casino gaming industry in the U.S. and internationally. The stock has a market capitalization of $475.46 million.

Everi Holdings grew its trailing 12-month EPS without NRI to 21 cents in full-year 2019, up 23.5% from 17 cents in 2018.

Wall Street sell-side analysts predict that Everi Holdings will keep on growing the EPS by 20% per year over the next five years versus the S&P 500's 4% growth rate. As of May, the stock has one strong buy and one buy recommendation rating from Wall Street.

The share price ($5.59 as of May 21) fell by 52.7% in the past year for a 52-week range of $1.55 to $14.88.

GuruFocus assigned the company a low financial strength rating of 3 out of 10 but a positive profitability rating of 6 out of 10.

eGain Corp

The third company to consider is eGain Corp (NASDAQ:EGAN), a Sunnyvale, California-based software services provider for businesses. The stock has a market capitalization of $309.96 million.

eGain Corp saw its trailing 12-month EPS without NRI grow by 41.7% in the past year to 17 cents per diluted share as of the third quarter of fiscal 2020, which ended on March 30, 2020, up from 12 cents per diluted share as of the same period of the previous fiscal year.

Wall Street sell-side analysts forecast that the EPS without NRI of the company will continue to grow by 10% per annum over the next five years, while the EPS of the S&P 500 is expected to grow 4% per year. As of May, one sell-side analyst recommends a buy rating and one sell-side analyst recommends a hold rating for this stock.

The share price ($10.10 as of May 21) rose by nearly 22% in the past year, determining a 52-week range of $4.80 to $10.74.

GuruFocus assigned the company a low profitability rating of 3 out of 10 but a good financial strength rating of 7 out of 10.

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

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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