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Welcome to Episode #420 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
With the S&P 500 and the Nasdaq hitting new all-time highs again this month, many stocks appear to be expensive. Valuations are stretched.
Are there ANY value stocks out there with good fundamentals which are also red-hot?
Screening for Cheap Momentum Stocks
Tracey turned to one of Zacks premium stock screens called: “Fast-Paced Momentum at a Bargain” to look for companies that still had some value but also were joining in on the rally.
How does the screen determine what a “bargain” is? It uses the price-to-sales ratio (P/S) and looks for it under 1.0. A P/S ratio under 1.0 usually indicates value as investors are getting $1 worth of sales for less than that $1.00.
For example, a P/S ratio of 0.7 means investors are paying $0.70 for every $1.00 of sales. That’s a deal.
This screen also looks for a Zacks Style score in Momentum of A or B. Those are the two highest Style scores.
Additionally, it also looks for double-digit price changes in the stock over 4 week and 12-week periods.
And finally, the screen uses the Zacks Rank to find companies with rising earnings estimates. It screens for stocks with a Zacks Rank of #1 (Strong Buy) or #2 (Buy). This includes over 800 stocks.
Running this screen, it returned just 17 top ranked stocks.
And while the screen didn’t explicitly look for small cap companies, this screen returned a bunch of them. Historically, small caps have outperformed the large caps.
3 Top Small Cap Bargain Stocks for Your Short List
Enerflex is a small cap energy infrastructure company based in Calgary. It has a market cap of $1.5 billion.
In the second quarter, the energy infrastructure contract backlog remained strong at $1.5 billion.
Enerflex shares are up 27.9% year-to-date but the stock remains a bargain. It has a forward price-to-earnings (P/E) ratio of just 10.4. A P/E of 10 or under indicates a dirt-cheap stock. Enerflex also has a price-to-sales (P/S) ratio of just 0.7.
It’s a rare small cap company that also pays a dividend, yielding 0.9%.
Enerflex is a Zacks #1 Rank (Strong Buy) stock. This is the top Rank.
Enova is an online financial services company that serves small businesses and consumers who are underserved by traditional banks. It has a market cap of $2.96 billion, which Tracey still considers to be a “small cap.”
In the third quarter of 2025, Enova’s revenue was up 16% to $803 million. Earnings are expected to jump 32.9% in 2025.
Shares of Enova are up 26.7% year-to-date. It’s a Zacks Rank #2 (Buy) stock.
Should investors be looking at online fintech companies like Enova in 2025?
Aveanna Healthcare operates a diversified homecare business serving 80,000 patients in 38 states, including children, adults and the geriatric population. It has a market cap of $2 billion.
On Oct 21, 2025, Aveanna released preliminary third quarter results which projected revenue growth between 21% and 22.6%. It also announced a 10 million share secondary.
Shares of Aveanna Healthcare are up 117% year-to-date. But it still has a low P/S ratio of just 0.94.
Aveanna Healthcare is a Zacks Rank #1 (Strong Buy).
Should a homecare provider like Aveanna be on your short list?
What Else Should You Know About Bargain Momentum Stocks?
Tune into this week’s podcast to find out.
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3 Top Small Cap Bargain Stocks for Your Short List
Key Takeaways
Welcome to Episode #420 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
With the S&P 500 and the Nasdaq hitting new all-time highs again this month, many stocks appear to be expensive. Valuations are stretched.
Are there ANY value stocks out there with good fundamentals which are also red-hot?
Screening for Cheap Momentum Stocks
Tracey turned to one of Zacks premium stock screens called: “Fast-Paced Momentum at a Bargain” to look for companies that still had some value but also were joining in on the rally.
How does the screen determine what a “bargain” is? It uses the price-to-sales ratio (P/S) and looks for it under 1.0. A P/S ratio under 1.0 usually indicates value as investors are getting $1 worth of sales for less than that $1.00.
For example, a P/S ratio of 0.7 means investors are paying $0.70 for every $1.00 of sales. That’s a deal.
This screen also looks for a Zacks Style score in Momentum of A or B. Those are the two highest Style scores.
Additionally, it also looks for double-digit price changes in the stock over 4 week and 12-week periods.
And finally, the screen uses the Zacks Rank to find companies with rising earnings estimates. It screens for stocks with a Zacks Rank of #1 (Strong Buy) or #2 (Buy). This includes over 800 stocks.
Running this screen, it returned just 17 top ranked stocks.
And while the screen didn’t explicitly look for small cap companies, this screen returned a bunch of them. Historically, small caps have outperformed the large caps.
3 Top Small Cap Bargain Stocks for Your Short List
1. Enerflex Ltd. (EFXT - Free Report)
Enerflex is a small cap energy infrastructure company based in Calgary. It has a market cap of $1.5 billion.
In the second quarter, the energy infrastructure contract backlog remained strong at $1.5 billion.
Enerflex shares are up 27.9% year-to-date but the stock remains a bargain. It has a forward price-to-earnings (P/E) ratio of just 10.4. A P/E of 10 or under indicates a dirt-cheap stock. Enerflex also has a price-to-sales (P/S) ratio of just 0.7.
It’s a rare small cap company that also pays a dividend, yielding 0.9%.
Enerflex is a Zacks #1 Rank (Strong Buy) stock. This is the top Rank.
Should Enerflex be on your short list?
2. Enova International (ENVA - Free Report)
Enova is an online financial services company that serves small businesses and consumers who are underserved by traditional banks. It has a market cap of $2.96 billion, which Tracey still considers to be a “small cap.”
In the third quarter of 2025, Enova’s revenue was up 16% to $803 million. Earnings are expected to jump 32.9% in 2025.
Shares of Enova are up 26.7% year-to-date. It’s a Zacks Rank #2 (Buy) stock.
Should investors be looking at online fintech companies like Enova in 2025?
3. Aveanna Healthcare Holdings Inc. (AVAH - Free Report)
Aveanna Healthcare operates a diversified homecare business serving 80,000 patients in 38 states, including children, adults and the geriatric population. It has a market cap of $2 billion.
On Oct 21, 2025, Aveanna released preliminary third quarter results which projected revenue growth between 21% and 22.6%. It also announced a 10 million share secondary.
Shares of Aveanna Healthcare are up 117% year-to-date. But it still has a low P/S ratio of just 0.94.
Aveanna Healthcare is a Zacks Rank #1 (Strong Buy).
Should a homecare provider like Aveanna be on your short list?
What Else Should You Know About Bargain Momentum Stocks?
Tune into this week’s podcast to find out.