During the ups and downs of the market, small cap stocks often stand out as hidden gems, promising both growth and value for investors animated by the thrill of discovery. These compact equities may not always shine as brightly as their larger counterparts, but like undiscovered constellations in the sky, they possess a unique allure.
Amidst the hustle and bustle of the investment world, Tracey Ryniec, the discerning editor of the Value Investor portfolio, unveils some hidden treasures in the small cap universe in the latest installment of the Value Investor Podcast.
Despite the glamour of large cap growth stocks hitting new peaks, the smaller players have been trailing, particularly in the realm of small cap value. Yet, history reveals that small cap value stocks have a storied legacy as stellar performers within the equity landscape.
Perhaps now is the moment to cast a discerning eye over a selection of top small cap stocks that are currently on sale?
Scouting for Small Cap Stocks with Growth and Value
In the pursuit of small cap value stocks, why not seek out those with a touch of growth thrown into the mix? A rare fusion it may be, but a potent one at that.
Enter Zacks with its premium screen tailored for such a quest. This screen seeks out stocks with a market cap under $1 billion, trading above $5, exhibiting a growth rate surpassing 20%, and flaunting a modest price-to-sales ratio below 1.0 – a telltale sign of undervaluation.
Moreover, a cherry on top in the form of a top Zacks Rank of Buy or Strong Buy may guide investors towards stocks where analysts have bestowed optimistic revisions upon their earnings estimates for the year.
This rigorous screen has yielded a cache of 11 small cap stocks, each awaiting discovery.
Exploring the Top Small Cap Stocks with Growth and Value
1. Astronics Corp. (NASDAQ: ATRO)
Astronics, the stalwart of defense, aerospace, and other mission-critical industries, unfurls its banner as a beacon of promise in the vast expanse of small cap stocks. With a market cap of $607 million, its shares have ascended by 35.8% in the past year, effortlessly outpacing the Russell 2000 small cap index. Not to mention, it still flaunts its affordability with a P/S ratio of 0.9.
Is Astronics the shining star beckoning to illuminate your small cap portfolio?
2. American Vanguard Corp. (NYSE: AVD)
American Vanguard, the diversified purveyor of specialty and agricultural products, weathers the storm besetting the agricultural domain. While its shares have dipped by 44.3% over the past year, its attractiveness is hard to ignore, with a bargain P/S ratio of just 0.6 and a forward P/E of 15.7.
Could an agricultural contender like American Vanguard illuminate the path to small cap riches?
3. Mativ Holdings, Inc. (NYSE: MATV)
Mativ Holdings, the vanguard of specialty materials from Alpharetta, GA, extends its footprint across three continents. Sporting a market cap of $979 million, the company has witnessed a recent decline in its shares by 19% over the last year, hinting at a tantalizing entry point. Trading near 5-year lows, it’s a bargain-worthy find with a P/S ratio of only 0.4.
Could investing in Mativ Holdings signal a voyage towards sizeable returns?
4. Quad/Graphics (NYSE: QUAD)
Quad/Graphics, the globetrotting purveyor of marketing experiences, has etched its mark with 2700 clients across 14 countries. With a market cap of $254 million, its shares have spiraled by 20.6% in the last year, offering a blend of opportunity and affordability with a forward P/E of 6.6. What’s more, Quad/Graphics sprinkles a rare dash of dividends, a peculiarity in the realm of small cap enterprises.
Could Quad/Graphics be the gem awaiting discovery in your small cap endeavors?
5. Synchronoss Technologies, Inc. (NASDAQ: SNCR)
Synchronoss Technologies, the quintessential Cloud maven, undergoes a transformative phase as it divests its Messaging and NetworkX ventures. With a market cap of $107 million, its shares have soared by 28.7% in the past year; however, they have plummeted by a staggering 88% over the 5-year horizon. Earnings projections for 2024 and 2025 appear bleak, yet its allure is undeniable, boasting a meager P/S ratio of 0.5.
Could Synchronoss Technologies present a tantalizing proposition for the discerning small cap investor?
Unraveling the World of Small Cap Stocks imbued with Growth and Value
Join the enthralling dialogue on this week’s podcast to unearth more about these captivating small cap stocks.
