There is so much profit that gets overlooked by investors every day. A lot of these profits which are missed out on come from small-cap growth stocks. In fact, the iShares S&P SmallCap 600 Growth (NYSE:IJT) has surged 114.61% over the last 5 years. In that same time frame, the S&P 500 index has only gained 75%.
Clearly, the historical 5 year trend suggests that there is more upside potential if you choose to invest in small-cap growth stocks. Which ones should you pick though? Look no further! Below, we highlight 3 top ranked small-cap growth stocks based on criterion of earnings and growth.
The Federal Agricultural Mortgage (NYSE:AGM)
Also known as Farmer Mac, this company establishes a secondary market for agricultural real estate mortgage loans. The stock has a PE of 7.92. It’s also worth noting that the company doles out a 2% dividend. Farmer Mac has a Zacks Rank #1 (Strong Buy). The stock price has surged 15.29% so far in April.
There have been two positive earnings estimate revisions by analysts over the last 60 days. 30 days ago, our consensus estimate called for earnings of $0.66 per share. Since then, our estimate has been revised higher, with a current earnings consensus of $0.76 per share. Farmer Mac beat our estimate by 29.23% when it reported its earnings last quarter. The company reports its earnings for the quarter on 5/11/15.
Horizon Pharma Inc (NASDAQ:HZNP)
Horizon Pharma is a biopharmaceutical company that specializes in creating and marketing products for unmet medical needs. Horizon currently holds a Zacks Rank #1 (Strong Buy). Expect a little more volatility, as the stock has a beta of 2.2. The year over year earnings growth estimate is 115%.
Horizon Pharma has surged 5% so far in April. Our current EPS consensus estimate for the quarter calls for earnings of $0.22 per share. The company beat our earnings estimate last quarter by 17.39%. Horizon reports its earnings on 5/8/15.
Western Refining Inc (NYSE:WNR)
This independent crude oil refiner refines oil and markets petrol products. It mainly operates in the Southwestern region of the US. As with the other stocks, this one is a Zacks Rank #1 (Strong Buy). It has a beta of 1.98, and doles out a 2.59% dividend. It has a PEG of 1.4, and a PE of 10.67.
So far in 2015, WNR has surged 19.14%. There have been 8 positive earnings estimate revisions by analysts in the last 60 days. 60 days ago, our EPS consensus called for EPS of $0.69. Since then, though, our estimate has been revised much higher, with our estimate currently calling for EPS of $1.19. The company has beaten on our earnings estimate in three of the last four quarters, and by an average of 10.11%. Western Refining, Inc. reports its earnings on 5/5/15.