7 Profitable Small Cap Stocks With "Buy" Ratings

For growth opportunities, many investors choose the small cap category. Companies of this size have plenty of room to grow, and yet they have already surpassed the start up phase. Risk is a known factor at this level, but there are ways to whittle down the pile to those with true potential. For your review, we ran a scan of small cap stocks with strong profits. In addition, all of the stocks in our list have a recent "Buy" rating from industry analysts. We think you find our list a helpful place to start your investigation.Return on Equity (ROE) is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture
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