As any seasoned investor knows that if you want to experience the highest return for your investing dollars, your best option is to look at small-cap stocks. These are the companies that tend to have rapid growth and since most analysts aren’t paying attention to them, the stock jumps when it becomes a household name.
So today I am going to highlight 5 explosive small-cap stocks that have the potential to provide you with a healthy return on your investment.
Top-5 Small-Caps
#1. Camtek (NASDAQ:CAMT)
Camtek is a company that is in the semiconductor testing business. It provides services for making sure that all of the devices that have a chip board in them work as stated. And seeing as how more and more items have a chip in them, business for Camtek shouldn’t slow down anytime soon.
In fact, the company recently sold off its printed circuit board business just so it could focus more on the testing area of the business.
Recent earnings per share came in at $0.11 and revenues at $34 million, which was a 73% increase. This company has been crushing earnings for 2 years now and shows no signs of slowing down.
#2. OraSure Technologies (NASDAQ:OSUR)
OraSure is a medical diagnostics company that has found its niche in saliva. It develops tests using saliva to quickly get results. Some of the tests the company currently offers are for HIV, Hepatitis C, blood alcohol levels and drug levels in the bloodstream.
Earnings per share recently came in at $0.09 and revenues at $40 million, an increase of 28%. The stock has risen sharply this year, but as the company continues to churn out new tests, there is no reason to think the stock won’t continue higher.
#3. Willdan Group (NASDAQ:WLDN)
Willdan is a consulting company. That doesn’t sound very exciting nor does it sound like the stock would be one to buy. But you have to understand what the company consults about to get excited about it.
The company advises state agencies, utilities and other organizations in California and New York on topics that include sustainability, homeland security and engineering.
The sexy word there is homeland security as that is a hot topic in the world we currently live in. But the company has reported most of its current earnings are from energy efficiency audits and reviews. This is another hot area currently and with exposure to both sectors, this stock should stay hot.
Earnings per share recently came in at $0.36 and revenues at $72 million, which is an increase of 22%.
#4. inTest Corporation (NYSE:INTT)
inTest Corp is another of the hot small cap stocks I like. And like CamTek, they are in the business of semiconductor testing. The company designs and manufactures the testing equipment for 3rd parties.
Why are semiconductors hot right now? As I mentioned, more and more devices are having a chip in them. For example, we currently have computers, tablets and smartphones. But we are quickly growing the internet of things, virtual reality, autonomous cars, and artificial intelligence industries as well.
Just that list adds thousands of new products that will have chips in them. And these chips need to be tested.
Earnings per share came in at $0.16 and revenues at $16 million, an increase of 51%. In the prior quarter, inTest grew earnings 38%.
#5. NutriSystem (NASDAQ:NTRI)
Nurtisystem was a on roll with a hot stock price. Then Weight Watchers (NYSE:WTW) announced its deal with Oprah and things for Nutrisystem stalled. But I still really like this stock. I think it is just being overshadowed by Weight Watchers. This means you can buy it before the price spikes even higher.
Like Weight Watchers, Nutrisystem is a company that helps people eat healthy and lose weight. What I especially like here though is that they tailor plans to both men and women. Weight Watchers seems to only target women, but there are many men who need to lose weight but don’t want to admit they are on a diet.
Nutrisystem has done a good job at helping men diet without feeling like they are dieting.
Earnings per share recently were reported at $0.80 and revenues came in at $195 million, an increase of 30%.
Final Thoughts
So there are 5 great small cap stocks to look into. These companies have a bright future ahead of them and are firing on all cylinders. Assuming they can continue to grow revenues and earnings at a steady pace, you can expect a healthy rise in their stock prices.
This author has no positions in any stock mentioned and does not plan to open any positions in any stocks mentioned for at least 72 hours after publication of this article.