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3 Top-Ranked Small Caps with Big Growth

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As many know, small-caps’ volatile nature can sometimes turn investors away.

However, many small-cap stocks turn out to be big winners in the long run, and they typically have fewer eyes on them, providing investors an opportunity to get in "early" before the crowd.

For those seeking exposure to small-caps, three stocks – IMMERSION (IMMR - Free Report) , DHI Group (DHX - Free Report) , and QuickLogic (QUIK - Free Report) – could all be considered. A few have shown a nice level of relative strength, confirming investor interest.

In addition, all three sport a favorable Zacks Rank, indicating optimism among analysts. Let’s take a closer look at each.

QuickLogic

QuickLogic, a current Zacks Rank #1 (Strong Buy), is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions. The earnings estimate revisions trend has been particularly bullish for its current year, up 44% to $0.36 per share over the last year and suggesting 110% growth.

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Image Source: Zacks Investment Research

The company snapped a streak of negative earnings surprises in its latest release, exceeding the Zacks Consensus EPS estimate by nearly 30%. Sales grew 80% year-over-year, whereas earnings climbed 255%.

Investors cheered on the results, which further fueled shares to deliver a market-beating performance so far in 2024. 

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Image Source: Zacks Investment Research

IMMERSION

IMMERSION, a current Zacks Rank #1 (Strong Buy), develops hardware and software technologies that enable users to interact with computers using their sense of touch.

As we can see below, shares have been volatile year-to-date, but saw a nice boost following its latest earnings release, helping to provide a sense of stability post-earnings.

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Image Source: Zacks Investment Research

The company’s growth profile shouldn’t be ignored, with estimates for its current fiscal year suggesting 7% higher earnings on nearly 60% higher sales. Keep an eye out for the company’s next quarterly release expected in early May, as consensus expectations presently suggest a 120% pop in earnings paired with a 250% sales increase.

Top line revisions for the upcoming release have been particularly bullish, up more than 250% to $25 million since last December.

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Image Source: Zacks Investment Research

DHI Group

DHI Group, a current Zacks Rank #1 (Strong Buy), offers specialized websites that focus on select professional communities. The earnings estimate revisions trend has shifted positively for its current fiscal year, with the $0.18 Zacks Consensus EPS estimate up 6% and suggesting 80% growth.

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Image Source: Zacks Investment Research

Shares have recently found support at the 50-day daily moving average, with market participants swooping in to buy regularly in 2024. Since making their 2024 low, DHX shares are up roughly 30%, widely outperforming relative to the general market.

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Image Source: Zacks Investment Research

Bottom Line

Small-cap stocks can be solid considerations for those who can handle a higher level of volatility and have a less conservative approach.

While their price swings can undoubtedly become spooky, their potential is undeniable.

And all three above – IMMERSION (IMMR - Free Report) , DHI Group (DHX - Free Report) , and QuickLogic (QUIK - Free Report) – boast strong earnings outlooks and recent positive price action.


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