It’s been a wild ride for the stock market in June. The first half of the month we saw a nice rebound in the broader market with a few triple-digit daily gains to boast of. Then we gave it all back with a few triple-digit declines amid the losses. It was one volatile month on Wall Street, and that has investors skittish about what’s next.

In my book, there aren’t many better places to stow your cash right now than small cap stocks — particularly fundamentally superior companies that are innovating and growing sales even in a challenging environment. These small caps are incredibly resilient and can really soar when they get even a small tailwind.

Just such a tailwind may be in store for a group of elite small caps as we enter the second quarter earnings season. One dramatic earnings report is all it takes for these stocks to gap up dramatically in just a single trading day — no matter what the market does.

To help you get your share, here are 5 small cap stocks you should watch this July in anticipation of another earnings season.

Small Cap Stock #1 – Spreadtrum Communications

Spreadtrum Communications (SPRD) designs and markets communications chips for the red-hot wireless telecom market. SPRD semiconductors, which are compatible with a range of international wireless standards, are sold to manufacturers of cell phones, which then incorporate them into their products. SPRD had a 225% earnings surprise last quarter, but by the time the company reported, the stock was already up nearly 40% in anticipation of the report! That means if you want to cash in on the strength of this pick you can’t delay. What’s more, SPRD has shown great strength in this volatile market. Despite a rough May for most stocks, this China-based semiconductor stock added +58% even as the Dow Jones lost nearly double digits!

Small Cap Stock #2 – Nova Measuring Instruments

Nova Measuring Instruments (NVMI) makes innovative optical equipment that measures microscopic images used to check the design of tiny microchips and other high-tech gear. In a nutshell, without Nova equipment performing quality control, chipmakers could wind up spending millions replacing or repairing electronic devices. Israel’s Nova posted an incredible 179% increase in revenue for the first period of this year. NVMI also announced a surge in earnings, from a loss of $1.6 million, or $0.08 per share, last year, to a gain of $2.8 million, or $0.12 per share, this year. In light of the positive results, the company revised year-end guidance upward to between $61 million and $66 million. This is clearly a small cap stock with staying power.

Small Cap Stock #3 – Impax Labs

Impax Laboratories (IPXL) makes specialty generic pharmaceuticals, specifically focusing on controlled-release versions of branded drugs and niche treatments that require difficult-to-obtain raw materials or specialized expertise. A chart of IPXL in the last 12 months shows an unstoppable uptrend accentuated by increasing earnings. Last quarter the company reported a 303% earnings surprise, and analysts have upped earnings estimates from $0.30 to $0.56 for the current quarter. I bet that the company will beat these estimates and will continue to post huge earnings in the quarters ahead. The company reports its Q2 earnings the first week of August.

Small Cap Stock #4 – Skechers

Skechers USA (SKX) is a household name for any family with teenagers. This fashionable footwear company caters primarily to America’s biggest spending machine — junior high and high school students! The stock is up +40% year-to-date and is up nearly +350% in the last 12 months! There’s no mystery as to why. The company has steadily improved earnings for four consecutive quarters, beating Wall Street expectations every time. Considering that SKX reported a quarterly loss in Q2 of 2009 and just posted EPS of $1.15 in its last earnings report, the current run up should only be the beginning of the success Skechers sees in 2010.

Small Cap Stock #5 – Netflix

Netflix Inc. (NFLX) is a movie rental company that has developed an ingenious business model built around the idea that individuals don’t want to leave their houses in order to rent a movie. Instead, Netflix sends movies directly to consumers; through the mail… people walk no further than their mailboxes to rent DVDs. You can also stream movies from Netflix on your computer or on a Wii or Xbox video game console! This company has seen runaway success as it has reinvented the movie rental business, and the success has been shared by stockholders. Netflix is up about +115% so far in 2010 alone, and almost +200% in the past 12 months! The company’s financial report in the last quarter was incredible, too. NFLX earnings rose nearly 60% and sales rose 25%. That tells me this success will continue.

At the time of this writing, Louis Navellier owned a position or was recommending all five of these stocks to subscribers in his paid investment newsletters.