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3 Top-Ranked Small Caps Crushing the S&P 500 In 2022
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Numerous investment styles exist, with some investors opting for income-generating assets, while others focus on value or specific industries.
And some investors prefer a less-conservative approach, such as small-cap stocks, which sport remarkable growth potential due to being in their early stages.
For those with a preference for small-caps, three top-ranked stocks – Universal Insurance Holdings (UVE - Free Report) , Vertex Energy (VTNR - Free Report) , and Vera Bradley (VRA - Free Report) – could all be considerations. Let’s take a deeper dive into each.
Universal Insurance Holdings
Universal Insurance Holdings is a leading holding company of property and casualty insurance and value-added insurance services. As we can see below, UVE’s earnings outlook has turned visibly bright over the last 60 days.
Image Source: Zacks Investment Research
It’s hard to ignore the company’s growth trajectory; the Zacks Consensus EPS Estimate of $1.65 suggests an improvement of more than 500% year-over-year. And in FY24, earnings are forecasted to climb a further 45%.
UVE posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 350% and registering a 4% revenue surprise. Investors cheered on the results, sending UVE shares soaring post-earnings.
Image Source: Zacks Investment Research
Vertex Energy
Vertex Energy is an environmental services company recycling industrial waste streams and off-specification commercial chemical products. Analysts have taken a bullish stance on the company’s bottom line outlook, pushing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Like UVE, Vertex Energy boasts an impressive growth profile, with earnings forecasted to soar a mind-boggling 900% in its current fiscal year. And in FY24, earnings are forecasted to improve a further 50%.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 30% in FY23 and 20% in FY24.
In addition, the company sports a 94.3% trailing twelve-month return on equity (ROE), indicating a notably higher level of generating profits from existing assets relative to the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
Vera Bradley
Vera Bradley Designs is a designer, producer, marketer, and retailer of accessories for women. Its products include handbags, accessories, and travel and leisure items. Currently, VRA is a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
VRA has posted strong quarterly results as of late, exceeding both earnings and revenue expectations in back-to-back releases. Just in its latest print, Vera Bradley posted a 6.6% EPS beat and reported revenue 7% above expectations.
Image Source: Zacks Investment Research
Bottom Line
For investors who favor a less conservative approach by targeting small-cap stocks, all three above – Universal Insurance Holdings (UVE - Free Report) , Vertex Energy (VTNR - Free Report) , and Vera Bradley (VRA - Free Report) – are three top-ranked options worth considering.
While this approach may be less conservative, it can lead to significant returns for those willing to take on the additional risk. Don't we all want in early on the next big thing?
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3 Top-Ranked Small Caps Crushing the S&P 500 In 2022
Numerous investment styles exist, with some investors opting for income-generating assets, while others focus on value or specific industries.
And some investors prefer a less-conservative approach, such as small-cap stocks, which sport remarkable growth potential due to being in their early stages.
For those with a preference for small-caps, three top-ranked stocks – Universal Insurance Holdings (UVE - Free Report) , Vertex Energy (VTNR - Free Report) , and Vera Bradley (VRA - Free Report) – could all be considerations. Let’s take a deeper dive into each.
Universal Insurance Holdings
Universal Insurance Holdings is a leading holding company of property and casualty insurance and value-added insurance services. As we can see below, UVE’s earnings outlook has turned visibly bright over the last 60 days.
Image Source: Zacks Investment Research
It’s hard to ignore the company’s growth trajectory; the Zacks Consensus EPS Estimate of $1.65 suggests an improvement of more than 500% year-over-year. And in FY24, earnings are forecasted to climb a further 45%.
UVE posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 350% and registering a 4% revenue surprise. Investors cheered on the results, sending UVE shares soaring post-earnings.
Image Source: Zacks Investment Research
Vertex Energy
Vertex Energy is an environmental services company recycling industrial waste streams and off-specification commercial chemical products. Analysts have taken a bullish stance on the company’s bottom line outlook, pushing the stock into a Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
Like UVE, Vertex Energy boasts an impressive growth profile, with earnings forecasted to soar a mind-boggling 900% in its current fiscal year. And in FY24, earnings are forecasted to improve a further 50%.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 30% in FY23 and 20% in FY24.
In addition, the company sports a 94.3% trailing twelve-month return on equity (ROE), indicating a notably higher level of generating profits from existing assets relative to the Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
Vera Bradley
Vera Bradley Designs is a designer, producer, marketer, and retailer of accessories for women. Its products include handbags, accessories, and travel and leisure items. Currently, VRA is a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
VRA has posted strong quarterly results as of late, exceeding both earnings and revenue expectations in back-to-back releases. Just in its latest print, Vera Bradley posted a 6.6% EPS beat and reported revenue 7% above expectations.
Image Source: Zacks Investment Research
Bottom Line
For investors who favor a less conservative approach by targeting small-cap stocks, all three above – Universal Insurance Holdings (UVE - Free Report) , Vertex Energy (VTNR - Free Report) , and Vera Bradley (VRA - Free Report) – are three top-ranked options worth considering.
While this approach may be less conservative, it can lead to significant returns for those willing to take on the additional risk. Don't we all want in early on the next big thing?