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Zacks Research Staff

3 Top Small-Cap Growth Stocks Building Momentum Now


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There is so much profit that gets overlooked by investors every day.  A lot of these profits which are missed out on come from small-cap growth stocks.  In fact, the iShares S&P Small-Cap 600 Growth ETF (IJT - Free Report) has surged 114.61% over the last 5 years.  In that same time frame, the S&P 500 index has only gained 75%. 

Clearly, the historical 5 year trend suggests that there is more upside potential if you choose to invest in small-cap growth stocks.  Which ones should you pick though? Look no further! Below, we highlight 3 top ranked small-cap growth stocks based on criterion of earnings and growth.

The Federal Agriculture Mortgage Corporation-

Also known as Farmer Mac, this company establishes a secondary market for agricultural real estate mortgage loans.  The stock has a PE of 7.92.  It’s also worth noting that the company doles out a 2% dividend.  Farmer Mac has a Zacks Rank #1 (Strong Buy).  The stock price has surged 15.29% so far in April. 

There have been two positive earnings estimate revisions by analysts over the last 60 days.  30 days ago, our consensus estimate called for earnings of $0.66 per share.  Since then, our estimate has been revised higher, with a current earnings consensus of $0.76 per share.  Farmer Mac beat our estimate by 29.23% when it reported its earnings last quarter.  The company reports its earnings for the quarter on 5/11/15.

Horizon Pharma plc-(HZNP - Free Report)

Horizon Pharma is a biopharmaceutical company that specializes in creating and marketing products for unmet medical needs.  Horizon currently holds a Zacks Rank #1 (Strong Buy).  Expect a little more volatility, as the stock has a beta of 2.2.  The year over year earnings growth estimate is 115%.

Horizon Pharma has surged 5% so far in April.  Our current EPS consensus estimate for the quarter calls for earnings of $0.22 per share.  The company beat our earnings estimate last quarter by 17.39%.  Horizon reports its earnings on 5/8/15.

Western Refining, Inc-(WNR - Free Report)

This independent crude oil refiner refines oil and markets petrol products.  It mainly operates in the Southwestern region of the US.  As with the other stocks, this one is a Zacks Rank #1 (Strong Buy).  It has a beta of 1.98, and doles out a 2.59% dividend.  It has a PEG of 1.4, and a PE of 10.67. 

So far in 2015, WNR has surged 19.14%.  There have been 8 positive earnings estimate revisions by analysts in the last 60 days.  60 days ago, our EPS consensus called for EPS of $0.69.  Since then, though, our estimate has been revised much higher, with our estimate currently calling for EPS of $1.19.  The company has beaten on our earnings estimate in three of the last four quarters, and by an average of 10.11%.  Western Refining, Inc. reports its earnings on 5/5/15. 

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