3 Small Caps for Growth-Focused Investors

Wall Street likes these fast-growing businesses

Summary
  • Hope Bancorp Inc., Goldman Sachs BDC Inc. and Sinclair Broadcast Group Inc. have improved their bottom lines significantly in the past year.
  • They also have positive ratings among the Wall Street community.
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Investors who are seeking opportunities among growth stocks could be interested in the following 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 positive recommendation ratings for them.

Hope Bancorp Inc.

The first company to consider is Hope Bancorp Inc (HOPE, Financial), a Los Angeles, California-based regional bank that provides banking services for consumers as well as small and mid-sized businesses in several states of the U.S.

For the most recent 12-month period ended Dec. 31, 2021, Hope Bancorp Inc. reported net income of $1.66 per share, an increase of 82.42% compared to the net income of $0.91 per share for full-year 2020.

The stock price ($16.69 per share on Jan. 27) is up 49.3% over the past year for a 52-week range of $11.05 to $17.68 and a market cap of $1.99 billion.

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On Wall Street, the stock has a median recommendation rating of hold with an average target price of $19 per share.

Goldman Sachs BDC Inc.

The second stock to consider is Goldman Sachs BDC Inc. (GSBD, Financial), a New York-based fund seeking investments in U.S. private companies with Ebitda between $5 million and $75 million annually.

For the most recent 12-month period ended Sept. 30, 2021, Goldman Sachs BDC Inc. reported net investment income of $2.07 per share, an increase of 15% compared to the net investment income of $1.80 per share for the 12-month period ended Sept. 30, 2020.

The stock price ($19.62 per share on Jan. 27) is up nearly 12% over the past year for a 52-week range of $17 to $20.65 and a market cap of $1.99 billion.

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On Wall Street, the stock has a median recommendation rating of hold with an average target price of $19.25 per share.

Sinclair Broadcast Group Inc.

The third company to consider is Sinclair Broadcast Group Inc. (SBGI, Financial), a Hunt Valley, Maryland-based operator of 188 stations for a total of 628 diversified media TV channels. The company also owns a regional sports network for the exclusive air broadcasting of 45 professional sports teams' games and other sports events.

For the most recent 12-month period ended Sept. 30, 2021, Sinclair Broadcast Group Inc. reported net income of $1.95 per share, a positive turnaround compared to the net loss of $37.72 per share for the 12 months ended Sept. 30, 2020.

The stock price ($26.30 per share on Jan. 27) is down 16.53% over the past year for a 52-week range of $22.44 to $39.60 and a market cap of $1.99 billion.

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On Wall Street, the stock has a median recommendation rating of hold with an average price target of about $32.86 per share.

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