4 Small Cap Stocks With Strong Profitability To Fuel Future Growth

Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. One way to mitigate that risk is to focus on small caps that have two traits: a track record of profitability, and strong projected growth on the horizon. Today we focused our screen on these sorts of stocks, and came up with a short, but rather interesting list.The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin is increasing over time this means that it's earning more per dollar of sales. Finding trends in the Operating Profit Margin helps investors identify companies that are improving profitability over time and managing the economic landscape better than competitors.Return on Equity
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