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3 Fast-Growing Small Caps

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Growth focused investors may want to have a look at the following trio of small-cap stocks, as their earnings per share (EPS) grew by more than 25% in the past year.

Furthermore, Wall Street sell-side analysts have predicted that these stocks will beat the S&P 500 (the benchmark for the U.S. market) significantly in terms of EPS growth over the next one to five years, resulting in positive recommendation ratings.


Spartan Motors Inc

The first company to have a look at is Spartan Motors Inc (NASDAQ:SPAR), a Novi, Michigan-based manufacturer and assembler of commercial and recreational vehicles for the U.S. and international industries. The stock has a market capitalization of $595.18 million.

Spartan Motors grew its trailing 12-month EPS without non-recurring items (NRI) to $1.11 per diluted share as of the first quarter of fiscal 2020, up from 53 cents per diluted share for the first quarter of fiscal 2019.

Wall Street sell-side analysts forecast that the company will keep on growing its EPS by 15% per annum over the next five years versus a 4% predicted growth rate for the S&P 500.

As of May, three analysts recommend a buy rating for this stock. The average target price is $21 per share.

Spartan Motors' share price ($16.80 as of May 8) rose by 78% in the past year for a 52-week range of $8.45 to $20.70.

Spartan Motors is currently paying a semi-annual dividend of 5 cents per common share, producing a dividend yield of 0.6% as of May 8. The next payment will be made on June 18.

Hawkins Inc

The second company to have a look at is Hawkins Inc (NASDAQ:HWKN), a Roseville, Minnesota-based blender, manufacturer and distributor of chemical products in the U.S. and internationally. The stock has a market capitalization of $388.58 million.

Hawkins grew its trailing 12-month EPS without NRI by 26.6% year over year to $2.57 per diluted share as of the quarter ended on Dec. 28, 2019, up from $2.03 per diluted share in the comparable quarter of 2018.

Wall Street sell-side analysts forecast that Hawkins' EPS will continue to grow by 131% over the next year.

Analysts have issued an overweight recommendation rating for shares of Hawkins Inc and established an average target price of $44 per unit.

The share price ($36.49 as of May 8) fell by 4% in the past year for a 52-week range of $26.82 to $47.94.

Hawkins currently pays a quarterly cash dividend of 23.25 cents per common share, which produces a dividend yield of 2.53% based on Friday's closing price.

Community Healthcare Trust Inc

The third company to have a look at is Community Healthcare Trust Inc (NYSE:CHCT), a Franklin, Tennessee-based real estate investment trust that owns healthcare facilities. The stock has a market capitalization of $857.74 million.

Community Healthcare Trust Inc saw its trailing 12-month EPS without NRI grow by 200% in the past year to 48 cents as of the first quarter of fiscal 2020, up from 16 cents as of the first quarter of fiscal 2019.

Wall Street sell-side analysts forecast that the EPS of the company will keep on growing by 100% this year and 14.90% next year, while the S&P 500 index is expected to post -18% and 26%, respectively.

As of May, one analyst recommends a strong buy rating and three analysts recommend a buy rating for this stock. The average target price is $40.13 per share.

The share price ($38.70 as of May 8) increased by 4.6% in the past year, determining a 52-week range of $20.12 to $52.33.

Community Healthcare Trust will distribute a quarterly cash dividend of 42 cents per common share on May 29 to shareholders of record as of May 15. The payment, which represents a 0.5% hike from the prior distribution, generates a dividend yield of 4.28% as of May 8.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.