Top Small Cap Stocks for March 2020

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Small cap stocks are listed companies that have market capitalizations ranging from $300 million to $2 billion. Since the share prices of these companies can have big fluctuations over a short period of time, companies with market caps of up to $10 billion are also found in the small cap universe. Some of the stocks classified as small cap include cloud computing business Fastly Inc. (FSLY), fitness and wellness company Tivity Health Inc. (TVTY), and gaming firm Century Casinos Inc. (CNTY). As reflected by the Russell 2000 Index (RUT), small cap stocks have lagged far behind the S&P 500, posting a 12-month gain of 3.9% compared to 16.7% for the S&P. These numbers on market performance and in the three tables below are as of February 25, 2020.

Below, we’ll look at the top small cap stocks for value, growth, and momentum for March 2020.

Small Cap Stocks with the Best Value

Here are the small cap stocks in the S&P 500 with the lowest 12-month trailing price-to-earnings (P/E) ratio in the sector. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Small Cap Stocks with the Best Value
  Price ($) Market Cap ($M) 12-Month Trailing P/E Ratio
Southwestern Energy Co (SWN) 1.55 839.0 0.8
California Resources Corp. (CRC) 7.03 345.3 0.9
Denbury Resources Inc. (DNR) 0.89 431.3 1.1
  • Southwestern Energy Co.: Southwestern Energy explores, develops, and produces natural gas and crude oil products, focusing on Texas. As part of its environmental stewardship initiative, the company has returned more than 10 billion gallons of freshwater to the environment.
  • California Resources Corp.: California Resources is an energy company involved in oil and natural gas exploration and production. As its name suggests, the company focuses its efforts on California properties.
  • Denbury Resources Inc.: Denbury Resources develops oil and natural gas properties in Mississippi, Texas, Louisiana, Alabama, and the Rocky Mountain states. The company reported an 8.2% year-over-year decline in quarterly revenue on Feb. 25.

Small Cap Stocks with the Fastest Earnings Growth

Here are the small cap stocks in the S&P 500 with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Small Cap Stocks with the Fastest Earnings Growth
  Price ($) Market Cap ($B) EPS Growth (%) 
Virtus Investment Partners Inc. (VRTS) 126.62 0.9 28,200
Kaman Corp. (KAMN 62.08 1.7 10,060
Enphase Energy Inc. (ENPH) 55.26 6.8 8,700
  • Virtus Investment Partners Inc.: Virtus Investment Partners manages portfolios and investments for individuals and institutional clients, focusing on public equities, fixed income, and the real estate market.
  • Kaman Corp.: Kaman is an aerospace company engaged in aircraft manufacturing as well as the design and fabrication of advanced technological systems. On Feb. 24. the company warned that the Boeing 737 MAX grounding would hurt 2020 earnings results. 
  • Enphase Energy Inc.: Enphase Energy provides solar energy cells and monitoring equipment for distributors, large installers, original equipment manufacturers, strategic partners, and homeowners.

Small Cap Stocks with the Most Momentum

These are the small cap stocks in the S&P 500 that had the greatest total return over the past 12 months.

Small Cap Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Axsome Therapeutics Inc. (AXSM) 88.51 3.3 882.4
Kodiak Sciences Inc. (KOD) 60.78 2.7 768.3
EverQuote Inc. (EVER) 45.74 1.2 672.6
S&P 500 (SPY) 16.7
Russell 2000 (RUT) 3.9
  • Axsome Therapeutics Inc.: Axsome Therapeutics is a biopharmaceutical company that develops drug treatments for central nervous system disorders as well as other health issues.
  • Kodiak Sciences Inc.: Kodiak Sciences develops therapies for high-prevalence diseases of the eye. KSI-301, the company’s top drug candidate, is a potential best-in-class treatment for macular degeneration and diabetic retinopathy.
  • EverQuote Inc.: EverQuote is an online marketing firm and platform that connects customers with auto insurance agents and carriers. It serves clients throughout the U.S. On Feb 24, the company reported an impressive 85% year-over-year increase in quarterly revenues.

Source: Investopedia

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