Small cap (market cap between $300 million to $2 billion) are perfect for investors who want to generate higher returns and have a high risk tolerance level. Such stocks are volatile and are more prone to market risks.
One can, however, reduce some risk by taking into account analyst recommendations. Stocks with strong buy recommendations are more likely to perform better than other stocks. Let’s take a look at ten small cap stocks with strong buy recommendations from analysts.
Ten Small Cap Stocks With Strong Buy Recommendation
We have used the analyst recommendation data from finviz.com to come up with ten small cap stocks with strong buy recommendations from analysts. We have ranked the stocks on the basis of their market cap (as of Mar. 24, 2022). Following are ten small cap stocks with strong buy recommendations from analysts, in reverse order:
10. Stewart Information Services (>$1.75 billion)
Founded in 1893 and headquartered in Houston, Stewart Information Services (NYSE:STC) is a real estate services company that deals in title insurance and settlement-related services. STC has the following business segments: Title Insurance and Related Services, and Ancillary Services and Corporate. Its shares are down over 18% YTD and almost 1% in the last one month. The company reported revenue of over $3 billion in 2021 and over $2.2 billion in 2020.
9. Fulgent Genetics (>$1.76 billion)
Founded in 2016 and headquartered in Temple City, Calif., Fulgent Genetics (NASDAQ:FLGT) is a technology company that deals in gene testing and sequencing solutions. It offers solutions related to genes and panels, known mutation, carrier screening, tumor profiling and hereditary cancer. Its shares are down almost 39% YTD but are up over 2% in the last one month. The company reported revenue of over $990 million in 2021 and over $420 million in 2020.
8. IVERIC bio (>$1.79 billion)
IVERIC bio (NASDAQ:ISEE) was founded in 2007 and is headquartered in Parsippany, N.J. It is a biopharmaceutical company that focuses on novel therapeutics to treat ophthalmic diseases. ISEE's shares are down over 3% YTD but are up almost 14% in the last one month.
7. Mesa Royalty Trust (>$1.81 billion)
Headquartered in Houston, Texas, Mesa Royalty Trust (NYSE:MTR) was founded in 1979 and holds royalty interests in oil and gas producing properties in the U.S., including Hugoton Royalty Properties located in the Hugoton field of Kansas, the San Juan Basin in San Juan Basin field of Colorado and more. Mesa Royalty Trust's shares are up almost 43% YTD and over 17% in the last one month. The company reported revenue of over $1.80 million in 2019.
6. ESCO Technologies (>$1.82 billion)
Founded in 1990 and headquartered in St. Louis, MO, this company makes engineered products and systems for utility, industrial, aerospace, and commercial applications. ESCO Technologies (NYSE:ESE) comprises the following business segments: Utility Solutions Group (USG), Aerospace & Defense (A&D), and RF Shielding and Test. Its shares are down almost 21% YTD but are up almost 5% in the last one month. The company reported revenue of over $700 million in 2021 and over $725 million in 2020.
5. Veritiv (>$1.84 billion)
Founded in 2014 and headquartered in Atlanta, Veritiv Cor (NYSE:VRTV) is a B2B (business-to-business) distributor of print, packaging, publishing, facility solutions, as well as print and publishing products and services. Veritiv also offers logistics and supply chain management solutions. Veritiv Corp's shares are up over 2% YTD and almost 24% in the last one month. The company reported revenue of over $6.80 billion in 2021 and over $6.30 billion in 2020.
4. CSW Industrials (>$1.84 billion)
CSW Industrials (NASDAQ:CSWI) offers performance solutions to customers, and has the following business segments: Industrial Products and Specialty Chemical. Founded in 2014 and headquartered in Dallas, CSWI's shares are down almost 3% YTD but are up almost 2% in the last one month. The company reported revenue of over $410 million in 2021 and over $380 million in 2020.
3. Everi Holdings (>$1.88 billion)
Founded in 2004 and headquartered in Las Vegas, this company offers technology solutions to casinos, as well as to the interactive and gaming industry. Everi Holdings (NYSE:EVRI) comprises the following business segments: Games and FinTech. Its shares are down almost 1% YTD and almost 9% in the last one month. The company reported revenue of over $660 million in 2021 and over $390 million in 2020.
2. InterDigital (>$1.92 billion)
Founded in 1972 and headquartered in Wilmington, Del., InterDigital (NASDAQ:IDCC) designs and develops technologies that support wireless communications, and capabilities. InterDigital focuses on mobile technology and devices. Its shares are down over 10% YTD but are up almost 1% in the last one month. The company reported revenue of over $425 million in 2021 and over $358 million in 2020.
1. Progress Software (>$1.95 billion)
Progress Software Corporation (NASDAQ:PRGS) created a platform that develops and deploys mission-critical business applications. Founded in 1981 and headquartered in Bedford, Mass., this company has the following segments: OpenEdge, Data Connectivity and Integration and Application Development and Deployment. Its shares are down over 8% YTD but are up almost 2% in the last one month. The company reported revenue of over $530 million in 2021.