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3 Fast-Growing Small Caps

Economic forecasters think that consumer spending (the largest factor to the U.S. Gross Domestic Product) will still rise over the next quarters, hitting $13.72 trillion around the end of the current year. The growth will represent a 2.3% advancement from $13.41 trillion reported for the last quarter of 2019.

Fast-growing EPS without NRI is a common characteristic amid stocks with a market capitalization of $300 million to $2 billion. Therefore, looking for growth opportunities, I have searched the market for these potential small-cap investments.


In addition to receiving high earnings predictions from analysts, these companies have also grown their trailing 12-month earnings per share without non-recurring items and received positive ratings from Wall Street sell-side analysts.

Ensign Group Inc

The first company to consider is Ensign Group Inc (NASDAQ:ENSG), a San Juan Capistrano, California-based provider of skilled nursing and senior living facilities in several states of the U.S. It has a market capitalization of about $1.93 billion.

Ensign Group Inc saw its trailing 12-month EPS without NRI grow 50.5% to $1.64 per share in full-year 2019, up from $1.09 in full-year 2018.

Wall Street sell-side analysts forecast that the EPS of the company will increase by 13.4% this year and 15% on average every year in the next five years. The S&P 500, which is a benchmark for the U.S. market, is expected to post a 5% decline this year and a 6% rise per year over the next five years.

Analysts issued an overweight recommendation rating for this stock and have set an average target price of $53 per share.

The current share price ($36.08 as of April 6) is not expensive, as it trades near the Peter Lynch earnings line.

Currently, Ensign Group Inc pays a quarterly cash dividend of 5 cents per common share, producing a dividend yield of 0.54% as of April 6.

GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a good profitability rating of 7 out of 10.

Core-Mark Holding Co

The second company to consider is Core-Mark Holding Co Inc (NASDAQ:CORE), a food products distributor with a market capitalization of about $1.27 billion.

Core-Mark Holding Co Inc saw its trailing 12-month EPS without NRI growing 26.3% to $1.25 in full-year 2019, up from 99 cents in full fiscal 2018.

Wall Street sell-side analysts forecast that the EPS of Core-Mark Holding will increase by 4.7% this year and 4% on average every year in the next five years. The S&P 500, which is a benchmark for the U.S. market, is expected to post a 5% decline this year and a 6% rise per year over the next five years.

Analysts recommend an overweight rating for this stock and have set an average target price of $32.25 per share.

The share price ($28.13 at close on April 6) currently trades slightly above the Peter Lynch earnings line.

Currently, Core-Mark Holding Co Inc pays a quarterly cash dividend of 12 cents per common share, generating a 1.64% dividend yield as of April 6.

GuruFocus assigned the company a positive financial strength rating of 6 out of 10 and a high profitability rating of 8 out of 10.

The Meet Group Inc

The third company to consider is The Meet Group Inc (NASDAQ:MEET). The New Hope, Pennsylvania-based operator of a portfolio of mobile social entertainment applications for human connection worldwide has a market capitalization of $424.4 million.

The Meet Group Inc saw its trailing 12-month EPS without NRI growing by an outstanding 650% rate to 15 cents in full-year 2019, up from 2 cents in full-year 2018.

Wall Street sell-side analysts forecast that the company will increase its EPS by 34% this year and 28% on average every year over the next five years. The S&P 500, which is a benchmark for the U.S. market, is expected to post a 5% decline this year and a 6% rise per year over the next five years.

Analysts issued a hold recommendation rating for this stock and have established an average price target of $6.54 per share.

Currently, the share price ($5.97 as of April 6) trades above the Peter Lynch earnings line, suggesting that this stock is not cheap.

The Meet Group Inc doesn't pay dividends.

GuruFocus assigned a good rating of 7 out of 10 for the company's financial strength and a positive profitability rating of 5 out of 10.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.