Growth-focused investors may want to consider the following small-cap stocks as they represent companies whose trailing 12-month pro forma earnings per share improved significantly on a year-over-year basis.
Furthermore, Wall Street sell-side analysts are forecasting these stocks will continue to improve their earnings over the next several years, which has caused them to issue positive recommendation ratings.
Amphastar Pharmaceuticals
The first stock to consider is Amphastar Pharmaceuticals Inc. (AMPH, Financial), a Rancho Cucamonga, California-based specialty pharmaceutical developer of injectable, inhalation and intranasal products for the treatment of several illnesses. These include deep vein thrombosis, asthma, adrenocortical insufficiency and transient episodes of a heart block. The stock has a market capitalization of about $924.4 million.
Amphastar Pharmaceuticals' trailing 12-month pro forma earnings were 55 cents per share as of the third quarter of 2020, up 34% from 41 cents as of the same quarter in 2019.
Wall Street sell-side analysts predict that Amphastar Pharmaceuticals' pro forma earnings will continue to increase by an average growth rate of 25% per annum over the next five years.
The share price ($19.37 as of Nov. 13) has risen 10% over the past year for a 52-week range of $12.33 to $22.69.
On Wall Street, the stock has an overweight recommendation rating with an average target price of $22.20 per share.
Prestige Consumer Healthcare
The second company to consider is Prestige Consumer Healthcare Inc. (PBH, Financial), a Tarrytown, New York-based developer, manufacturer and distributor of several health care products in North America and internationally. These products are used to treat several non-serious disorders, including some stomach and high respiratory discomforts. The stock has a market capitalization of around $1.8 billion.
Prestige Consumer Healthcare's trailing 12-month diluted pro forma earnings were $3.27 per share as of the second quarter of fiscal 2021 (which ended on Sept. 29), marking a 17.6% increase from $2.78 in the prior-year quarter.
Wall Street sell-side analysts predict that Prestige Consumer Healthcare's pro forma earnings will continue to grow by approximately 4% on average every year over the next five years.
The share price ($36.01 as of Nov. 13) has fallen 1.9% over the past year, determining a 52-week range of $27.4 to $46.12.
On Wall Street, the stock has an overweight recommendation rating and an average target price of $42.75 per share.
Great Lakes Dredge & Dock
The third company to consider is Great Lakes Dredge & Dock Corp. (GLDD, Financial), an Oak Brook, Illinois-based provider of dredging services. The stock has a market capitalization of $738.07 million.
Great Lakes Dredge & Dock's trailing 12-month diluted earnings (from ongoing activities) were $1.08 per share as of the third quarter of 2020, up 61.2% from 67 cents per share as of the year-ago quarter.
Wall Street sell-side analysts predict a nearly 38% increase in the company's diluted earnings for the current year.
The share price ($10.99 as of Nov. 13) has grown 12.2% over the past year for a 52-week range of $6.75 to $11.96.
On Wall Street, the stock has a buy recommendation rating with an average target price of $15.68 per share.
Disclosure: I have no positions in any securities mentioned.
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