Growth-focused investors may want to consider investing in the following small-cap stocks, as they represent companies whose trailing 12-month pro forma earnings per share (EPS) improved dramatically on a year-over-year basis.
Furthermore, Wall Street sell-side analysts are predicting that these stocks will continue to improve their earnings over the next years, leading them to issue optimistic recommendation ratings.
Limelight Networks Inc
The first stock investors should consider is Limelight Networks Inc (LLNW, Financial), a Scottsdale, Arizona-based provider of software and infrastructure services to various U.S. and international media companies and other operators of businesses online. The stock has a market capitalization of $722.67 million.
Limelight Networks Inc's trailing 12-month pro forma EPS was 9 cents as of the most recent quarter, which ended on June 29, up 125% from 4 cents for the comparable quarter in 2019.
Wall Street sell-side analysts predict that Limelight Networks Inc will continue to grow its pro forma EPS by 15% on average every year over the next five years.
The share price ($5.92 as of Sept. 29) has gained nearly 100% over the past year for a 52-week range of $2.78 to $8.19.
On Wall Street, the stock has a buy recommendation rating and an average target price of $8.87 per share.
Endurance International Group Holdings Inc
The second company under consideration is Endurance International Group Holdings Inc (EIGI, Financial), a Burlington, Massachusetts-based provider of cloud platform service solutions to the small and medium-sized businesses worldwide. The stock has a market capitalization of around $828.94 million.
Endurance International Group Holdings Inc's trailing 12-month pro forma EPS was 13 cents as of the second quarter of 2020, marking a positive switch from a net loss of 15 cents per share as of the same period in 2019.
Wall Street sell-side analysts predict that Endurance International Group Holdings Inc will continue to grow its pro forma EPS by approximately 15.23% on average every year over the next five years.
The share price ($5.89 as of Sept. 29) has risen 60% over the past year, determining a 52-week range of $1.31 to $6.69.
On Wall Street, the stock has a hold recommendation rating and an average target price of $6.13 per share.
Fulgent Genetics Inc
The third company to consider is Fulgent Genetics Inc (FLGT, Financial), a Temple City, California-based provider of genetic testing services. The stock has a market capitalization of $936.72 million.
Fulgent Genetics Inc's trailing 12-month pro forma EPS was 32 cents as of the second quarter of 2020, growing dramatically on a year over year basis, as it was 1 cent for the comparable quarter in 2019.
Wall Street sell-side analysts predict that Fulgent Genetics Inc's pro forma EPS will grow by 44.5% on average every year over the next five years.
Fulgent Genetics Inc's share price ($41.81 as of Sept. 29) has risen by 301% over the past year for a 52-week range of $6.70 to $52.47.
On Wall Street, the stock has an overweight recommendation rating and an average target price of $56.25 per share.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Stocks Trading Below the Intrinsic Value
- 3 Stock Picks for a 'Buy and Hold' Approach
- A Trio of Capital-Intensive Stocks to Consider
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
