#Good buys micro cap stocks software#
Indeed, analysts expect the software company to generate compound annual earnings per share growth of 150% over the next three to five years, according to data from S&P Global Market Intelligence. Q2's business model and execution has Wall Street drooling over the small cap's growth prospects. To that end, Q2 recently announced the acquisition of ClickSWITCH, which focuses on customer acquisition and retention by making the process of switching digital accounts easier. The idea is to make it so that smaller firms – which are sometimes small caps themselves – can give account holders the same kind of top-flight online tools, services and experiences as the industry's big boys. Q2 Holdings ( QTWO, $103.06) provides cloud-based virtual banking services to regional and community financial institutions.
Read on as we analyze what makes each one stand out. That led us to this list of the 7 best small-cap growth stocks to buy now, by virtue of their high analyst ratings and bullish outlooks. That means analysts, on average, expect these companies to generate compound annual earnings per share (EPS) growth of 20% or more for the next three to five years.Īnd lastly, we dug into research, fundamental factors and analysts' estimates on the most promising small caps. We also limited ourselves to names with projected long-term growth (LTG) rates of at least 20%. The closer a score gets to 1.0, the stronger the Buy recommendation. Any score below 2.5 means that analysts, on average, rate the stock as being Buy-worthy. Here's how the recommendation system works: S&P Global Market Intelligence surveys analysts' stock recommendations and scores them on a five-point scale, where 1.0 equals a Strong Buy and 5.0 is a Strong Sell. To do so, we screened the Russell 2000 for small caps with outsized growth prospects and analysts' highest consensus recommendations, according to S&P Global Market Intelligence. Given the increased interest in these securities, we decided to find some of analysts' favorite small caps to buy. But small-cap growth stocks – particularly in this environment – can offer potentially much greater rewards. It's also important to note that it can be dangerous to chase performance.
Keep in mind that small-cap stocks come with heightened volatility and risk. Indeed, the small-cap benchmark Russell 2000 index is up 13.6% for the year-to-date through April 8, while the blue chip Dow Jones Industrial Average added just 9.5% over the same span. Small caps tend to outperform in the early parts of the economic cycle, so it should come as no surprise that they are clobbering stocks with larger market values these days. "That environment favors small-cap names, which tend to have a more domestic focus than larger multinational firms." economy is currently trending toward high-single digit GDP growth in 2021 as COVID-19 vaccine distribution expands and we gradually emerge from the pandemic," says Lule Demmissie, president of Ally Invest. Stocks with smaller market values are outperforming by a wide margin so far this year, and strategists and analysts alike say small caps should continue to lead the way as the economic recovery gains steam.
0 kommentar(er)
