Various investment styles exist, with some investors opting for income-generating assets, while others focus on value or specific industries.

Of course, some investors prefer a less-conservative approach, such as small-cap stocks, which sport remarkable growth potential due to being in their early stages.

After all, don’t we all dream of getting in on the next big thing?

Three small-caps – Turtle Beach , Universal Insurance Holdings (UVE Quick QuoteUVE - Free Report) , and Horizon Technology Finance (HRZN Quick QuoteHRZN - Free Report) – all boast strong growth trajectories.

In addition, all three sport a favorable Zacks Rank, indicating that analysts have recently become optimistic about their near-term earnings outlooks. Let’s take a closer look at each one.

Turtle Beach

Turtle Beach Corporation is an audio technology company that designs products for consumer, commercial, and healthcare markets. The stock currently carries a Zacks Rank #2 (Buy), with earnings expectations increasing across all timeframes.

Image Source: Zacks Investment Research

It’s hard to ignore the company’s growth profile, with earnings forecasted to climb 80% in its current fiscal year on 14% higher revenues. And in FY24, earnings and revenue are estimated to grow an additional 150% and 8%, respectively.

The stock carries a Style Score of “A” for Growth.

The company posted strong quarterly results in its latest release, delivering a 35% EPS beat and a solid 11.6% revenue surprise. The market reacted strongly to the results, with HEAR shares seeing a boost post-earnings.

Image Source: Zacks Investment Research

Universal Insurance Holdings

Universal Insurance Holdings is a leading holding company of property and casualty insurance and value-added insurance services. Analysts have become visibly optimistic regarding UVE’s current fiscal year, with the annual EPS estimate being revised 14% higher since May of 2022.

Image Source: Zacks Investment Research

Universal Insurance is forecasted to witness significant earnings growth, with the $2.00 per share estimate implying an improvement of nearly 600% year-over-year. Looking ahead to next year, estimates call for an additional 20% of earnings growth on 9% higher revenues.

For those with an appetite for income, UVE shares have that covered; the company’s annual dividend presently yields a solid 4.2%, well above the Zacks Finance sector average.

Image Source: Zacks Investment Research

Horizon Technology Finance

Horizon Technology Finance makes secured loans to development-stage companies in the technology, life science, healthcare information and services, and cleantech industries. The stock presently boasts a Zacks Rank #1 (Strong Buy), with earnings expectations increasing nearly across the board.

Shares could entice value-focused investors, with the current 7.6X forward earnings multiple sitting nicely beneath the 9.9X five-year median and Zacks sector average.

Image Source: Zacks Investment Research

Like UVE, Horizon Technology Finance rewards its shareholders handsomely, with its dividend presently yielding a double-digit 10.3% annually. The company has upped its payout three times over the last five years.

Image Source: Zacks Investment Research

And to top it off, HRZN is expected to witness solid growth in its current fiscal year, with estimates calling for 16% earnings growth on 36% higher revenues.

Bottom Line

While small caps are typically more volatile, their growth potential is challenging to ignore.

And for those with a less-conservative approach, all three stocks above – Turtle Beach , Universal Insurance Holdings (UVE Quick QuoteUVE - Free Report) , and Horizon Technology Finance (HRZN Quick QuoteHRZN - Free Report) – could be solid watchlist additions.

All three sport a favorable Zacks Rank and are forecasted to enjoy positive earnings and revenue growth, undoubtedly a strong pairing.