A well-balanced portfolio has a lot of diversity. You can find a place for mega-cap stocks and small-cap growth stocks and everything in between. You can get your stocks in a variety of sectors by picking and choosing winners. That’s why I have a variety of wallets. Diversity is of crucial importance.
Small cap growth stocks are an attractive opportunity these days. Especially now, when the Federal Reserve continues to raise interest rates and the stock market is a volatile market. Small cap growth stocks are a favorable strategy because they offer great potential. And you can find names in different industries that are relatively inexpensive compared to their competitors.
Here are seven exciting small-cap growth stocks to buy now. Although they represent a variety of sectors and have their own stories, each of them has one thing in common: they all have an overall grade of “A” in my portfolio binder.
|ACLS||Axcelis Technologies, Inc.||$56.05|
|AT SIX||AdvanSix Inc.||$33.48|
|BENCH||Bank of California, Inc.||$17.60|
|HURN||Huron Consulting Group Inc.||$63.54|
|WFP||Pampa Energy SA||$21.05|
Small Cap Growth Equity: Axcelis Technologies (ACLS)
Axcelis Technologies (NASDAQ:ACLS) is taking a beating and is down over 26% year-to-date. But that’s really not surprising given the poor performance of tech stocks in 2022.
But all is not lost. Axcelis sells the next-generation Purion platform with ion implanter technology used in the semiconductor manufacturing process. In other words, it helps semiconductor companies maximize yields by reducing problems and minimizing contagion from metals used in the process.
The company says it improves the “accuracy, purity and productivity” of the manufacturing plant.
First-quarter profit was $203.6 million, up 53.3% from a year ago. Earnings per share (EPS) came in at $1.22 per share, beating expectations by 26 cents.
AdvanSix (NYSE:AT SIX) is a New Jersey-based chemical manufacturer that is one of the world’s largest producers of nylon resin, which is used in everything from carpeting to packaging.
It is perhaps best known as the world’s largest single-site ammonium sulfate fertilizer producer. That’s good considering the Earth is home to 8 billion people today and fertilizers are needed to maximize crop yields.
ASIX shares began publicly trading in 2016 and rose sharply earlier this year, trading in the low $50s. But a sharp decline sent shares of AdvanSix down about 30% for the year.
First-quarter earnings included revenue of $479 million, up 27.3% from a year ago but below analysts’ expectations of $481.7 million. Earnings of $2.26 per share were well ahead of expectations of $1.76 per share.
Small Cap Growth Stocks: Banc of California (BANC)
California bench (NYSE:BENCHlisten)) is a regional bank with 29 branches throughout Southern California. And like other banking stocks, it balances headwinds and competing headwinds.
On the positive side, rising interest rates make bank stocks quite attractive, as they will get more out of their loans as interest rates rise. But on the other hand, fears of a recession are keeping many investors on the sidelines, as banks could be hit hard by a major drop in long-term spending.
If and when those recession fears fade, regional banks like BANC could be the big winners. Banc of California stock is down just 11% so far this year, but it still has plenty of room to rise once the economy picks up.
First quarter revenue was $113.74 million and EPS was 69 cents per share.
Huron Consulting Group (HURN)
Based in Chicago Huron Consulting Group (NASDAQ:HURN) is a consulting firm that works in healthcare, life sciences, commerce and higher education. It has over two dozen locations around the world.
Huron can help struggling businesses get back on their feet and help successful businesses be more efficient. It was formed by former executives of Arthur Anderson, which was an accounting firm that went bankrupt in the Enron scandal two decades ago.
Unlike some of the other names on this list, business has been good so far for Huron in 2022. HURN stock is up 27%, after rising steadily since April. The company expects double-digit revenue growth through at least 2025.
First-quarter revenue was $260.05 million, beating analysts’ expectations of $234.67 million. Diluted EPS was $1.27.
Small Cap Growth Equity: Pampa Energia SA (PAM)
Pampa Energy SA (NYSE:WFP) is an Argentina-based utility company. It is involved in everything from high-voltage transmission lines to natural gas pipelines, from oil wells to refineries. This type of diversification makes PAM shares all the more attractive to investors.
As Argentina’s economy grows, Pampa Energia will be at the forefront. And if you’re looking to get involved in an international small-cap growth stock, then the PAM stock is an intriguing possibility.
PAM stock has had a year of ups and downs and is just breaking even in 2022. First quarter revenue was $44.01 billion, about 5% lower than analysts’ expectations. Earnings of $1.59 per share, however, clearly beat the 99 cent EPS the street expected.
There haven’t been many tech stocks on this list, but Phototronics (NASDAQ:PLAB) is a worthy game. Photronics manufactures photomasks used in semiconductor manufacturing for customers in Europe, the United States and China. Its products are used in flat panel displays and integrated circuits.
PLAB stock was down sharply earlier this year, but has since rebounded to break even in 2022. But you can expect great volatility for this stock and other semiconductor stocks.
Revenue for the first quarter of the year was $204.51 million, higher than analysts’ expectation of $192.37 million. Earnings per share were 49 cents, an improvement from analysts’ suggested EPS of 35 cents.
Small Cap Growth Stocks: ePlus (PLUS)
Finally, we have ePlus (NASDAQ:MORE), which is an information technology (IT) company that builds integrated computer systems for companies in the United States and Europe.
Companies like ePlus are needed because the world is changing incredibly fast, especially for companies that work on their own products and don’t notice the massive technological changes in enterprise software and hardware that can help their businesses run better. and faster. .
ePlus stock is down about 5% so far this year, but that’s after a steep decline over the past two months. So there is plenty of room for the PLUS stock to regain momentum and move forward.
Revenue for the fourth quarter of fiscal 2022 was $451.52 million, which beat analysts’ expectations of $417.07 million. EPS was also a pleasant surprise, coming in at $1.01 per share versus 74 cents expected by analysts.
As of the date of publication, Louis Navellier had a long position in ACLS, ASIX, PAM and PLAB. Louis Navellier has held (neither directly nor indirectly) any other position in the securities mentioned in this article. The InvestorPlace research staff member primarily responsible for this article has not held (directly or indirectly) any position in the securities mentioned in this article.