Friday, August 10, 2012

6 Small-Cap Stocks With Strong Projected Growth Trading Below Appeared Value


When you are looking for the greatest growth opportunities, small-cap stocks are a logical place to start. To temper the risk that typically accompanies investments in stocks at this level, scrutinizing a company's ability to grow is a first step. The EPS rate is one measurement that is helpful in finding companies that are slated for significant growth. With this is mind, we searched for small-cap stocks that have EPS growth rates of 25% or better in the next year. In addition, we only included companies that look undervalued according to their fundamentals. We arrived at a list of stocks that warrant more research.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher
... Read the rest at SeekingAlpha.com

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