Investors seeking growth opportunities may want to consider the following small-cap stocks, as these companies recorded a more than 20% rise in their earnings per share (EPS) without non-recurring items (NRI) over the last full fiscal year. Sell-side analysts on Wall Street also expect these stocks to outperform the S&P 500 in terms of earnings growth over the next five years, which has led to their issuance of positive recommendation ratings.
Boise Cascade Co
The first company to consider is Boise Cascade Co (BCC, Financial), a Boise, Idaho-based manufacturer and distributor of wood products and construction materials in North America. The stock has a market capitalization of $1.38 billion.
Boise Cascade Co recorded 296.2% growth in its trailing 12-month EPS without NRI to $2.06 in 2019, up from 52 cents in 2018.
Wall Street sell-side analysts forecast that the company’s EPS will increase by nearly 8% every year over the next five years, beating the S&P 500, which is expected to add 3% per annum. As of June, the stock has one strong buy recommendation rating and six hold recommendation ratings on Wall Street.
The share price ($35.24 as of June 16) increased by 39% in the past year, determining a 52-week range of $20.08 to $41.14.
With 17.76% of shares outstanding, BlackRock Inc. is the company's top fund holder, followed by Vanguard Group Inc with 11.95%.
Materion Corp
The second company to consider is Materion Corp (MTRN, Financial), a Mayfield Heights, Ohio-based manufacturer and seller of advanced engineered materials to several industries worldwide. The stock has a market capitalization of $1.2 billion.
Materion Corp recorded 142.6% growth in its trailing 12-month EPS without NRI to $2.45 in 2019, up from $1.01 in 2018.
Wall Street sell-side analysts predict that the company will continue to grow its EPS by 12% every year over the next five years. As of June, analysts issued three hold recommendation rating for this stock.
The share price ($59.20 as of June 16) declined by 12.7% in the past year, determining a 52-week range of $26.15 to $71.97.
The company's top fund holder is BlackRock Inc. with 17.28% of shares outstanding, followed by Vanguard Group Inc with 10.87%.
Arconic Corp
The third company to consider is Arconic Corp (ARNC, Financial), a Pittsburgh, Pennsylvania-based manufacturer and seller of aluminum rolled products, section bars and architectural systems in the U.S. and internationally. The stock has a market capitalization of $1.81 billion.
Arconic Corp recorded 20.3% increase in its trailing 12-month EPS without NRI to $2.07 in 2019, up from $1.72 in 2018.
Wall Street sell-side analysts forecast ongoing growth in the EPS of the company for the next five full fiscal years at a pace of 12.62% per annum. As of June, one analyst recommends a strong buy rating, five analysts recommend a buy rating and three analysts recommend a hold rating for this stock.
Arconic Corp's share price ($16.61 as of June 16) was up 140% in the past year for a 52-week range of $5.80 to $19.69.
The company's top fund holder is BlackRock Inc. with 13.41% of shares outstanding.
Disclosure: I have no positions in any securities mentioned.
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