3 Small Caps for Growth-Focused Investors

Wall Street also likes these companies

Summary
  • EVO Payments Inc, Yext Inc and Smith & Wesson Brands Inc have advanced their bottom lines significantly in the past year.
  • They are attracting the attention of growth-focused investors.
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Investors who are chasing growth could be interested in the following trio of small-cap stocks, as they represent companies whose trailing 12-month net income per share has improved significantly on a year-over-year basis. Wall Street sell-side analysts have also issued optimistic recommendation ratings for all of them.

EVO Payments Inc

The first company is EVO Payments Inc (EVOP, Financial), an Atlanta, Georgia-based provider of payment and commerce solutions to approximately 550,000 merchants internationally.

For the trailing 12-month period through June 30, EVO Payments Inc endured a net loss of $0.02 per share, marking a significant improvement compared to the net loss of $0.39 per share for the trailing 12-month period through June 30, 2020.

The share price ($22.52 as of Oct. 8) has fallen by 12.3% over the past year for a 52-week range of $20.45 to $31.99 and a market capitalization of $1.07 billion.

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On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $30 per share.

Yext Inc

The second stock to consider is Yext Inc (YEXT, Financial), a New York-based operator of a platform through which it provides answers to questions from North American and international consumers.

For the trailing 12-month period through July 30, Yext Inc endured a net loss of $0.69 per share, which represents a significant improvement compared to the net loss of $1.11 per share for the trailing 12-month period through July 30, 2020.

The share price ($11.38 as of Oct. 8) has fallen by 32.4% over the past year, determining a 52-week range of $11.21 to $20.23 and a market capitalization of $1.45 billion.

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On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $15.93 per share.

Smith & Wesson Brands Inc

The third company to consider is Smith & Wesson Brands Inc (SWBI, Financial), a Springfield, Massachusetts-based manufacturer and global seller of firearms.

Smith & Wesson Brands Inc’s earnings per share for the trailing 12 months ended on July 30 was $5.26, marking an impressive growth from earnings of $1.30 per share for the trailing 12-month period through July 30, 2020.

On the market, the stock price ($20.87 as of Oct. 8) has risen by 26.12% over the past year, determining a 52-week range of $14.50 to $39.61 and a market capitalization of $1 billion.

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On Wall Street, the stock has a median recommendation rating of overweight with an average price target of about $31.80 per share.

Disclosure: I have no positions in any securities mentioned.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure