A well-rounded portfolio has plenty of diversity. You can find a place for mega-cap stocks and small-cap growth stocks and everything in between. You can get your stocks in a variety of sectors as you pick and choose winners. That’s why I have a variety of portfolios. Diversity is critically important.
Small-cap growth stocks are an interesting opportunity these days. Particularly now, as the Federal Reserve continues to raise interest rates and the stock market is a volatile place to be. Small-cap growth stocks are a favorable strategy because they offer big potential. And you can find names in different sectors that are relatively inexpensive compared to their competitors.
Here are seven interesting small-cap growth stocks to buy now. While they represent a variety of sectors and have their own stories, each of them has one thing in common: They all have an overall grade of “A” in my Portfolio Grader.
|ACLS||Axcelis Technologies, Inc.||$56.05|
|BANC||Banc of California, Inc.||$17.60|
|HURN||Huron Consulting Group Inc.||$63.54|
|PAM||Pampa Energia S.A.||$21.05|
Small-Cap Growth Stocks: Axcelis Technologies (ACLS)
Axcelis Technologies (NASDAQ:ACLS) is taking a beating and is down more than 26% so far this year. But that’s really not surprising considering how badly tech stocks have performed in 2022.
But not all is lost. Axcelis sells the next-generation Purion platform with an ion implanter technology used in the semiconductor fabrication process. In other words, it helps semiconductor companies optimize yields by reducing glitches and minimizing contagion of metals used in the process.
The company says it improves fabrication plant “precision, purity and productivity.”
Earnings for the first quarter were $203.6 million, which was up 53.3% from a year ago. Earnings per share (EPS) came in at $1.22 per share, a beat for expectations by 26 cents.
AdvanSix (NYSE:ASIX) is a New Jersey-based chemical manufacturer that is one of the world’s largest producers of nylon resin, which is used in everything from carpeting to packaging.
It is perhaps better known as the world’s biggest single-site producer of ammonium sulfate fertilizer. That’s good considering the Earth now is home to 8 billion people and fertilizer is needed to maximize crop yields.
ASIX stock began trading publicly in 2016 and was up big earlier this year, trading in the $50s. But a steep drop has AdvanSix stock down roughly 30% on the year.
First-quarter earnings included revenue of $479 million, up 27.3% from a year ago, but less than analysts’ expectations of $481.7 million. Earnings of $2.26 per share handily beat expectations of $1.76 per share.
Small-Cap Growth Stocks: Banc of California (BANC)
Banc of California (NYSE:BANC) is a regional bank with 29 branches scattered throughout Southern California. And like other banking stocks, it is balancing competing headwinds and tailwinds.
On the plus side, rising interest rates make bank stocks pretty appealing because they’ll earn more from their loans as interest rates rise. But on the downside, fears of a recession are keeping a lot of investors on the sidelines as banks could be hit hard by a significant long-term downturn of spending.
If and when those recession fears fade away, regional banks like BANC could be big winners. Banc of California stock is down only 11% so far this year, but it still has plenty of room to run higher once the economy turns its way.
Revenue for the first quarter was $113.74 million and EPS was 69 cents per share.
Huron Consulting Group (HURN)
Chicago-based Huron Consulting Group (NASDAQ:HURN) is a consulting firm that works in healthcare, life sciences, commercial and higher education. It has more than two dozen locations around the world.
Huron can help struggling companies regain their financial footing and help companies that are operating well to be more efficient. It was formed by former executives of Arthur Anderson, which was an accounting firm that went belly-up as part of the Enron scandal two decades ago.
Unlike some other names on this list, business has been good so far for Huron in 2022. HURN stock is up 27%, having risen steadily since April. The company is expecting double-digit revenue growth at least through 2025.
Revenue in the first quarter was $260.05 million, beating analysts’ expectations of $234.67 million. Diluted EPS was $1.27.
Small-Cap Growth Stocks: Pampa Energia SA (PAM)
Pampa Energia SA (NYSE:PAM) is an Argentina-based utility company. It is involved in everything from high-voltage transmission lines to natural gas pipelines to oil wells to refineries. That kind of diversification makes PAM stock all the more attractive to investors.
As the Argentine economy grows, Pampa Energia will be at the forefront. And if you’re looking to get involved in an international small-cap growth stock, then PAM stock is an intriguing possibility.
PAM stock has had an up-and-down year and is just over breaking even in 2022. Revenue for the first quarter was $44.01 billion, which was about 5% under analysts’ expectations. Earnings of $1.59 per share, however, soundly beat the 99 cent EPS that the Street expected.
There haven’t been a lot of tech stocks on this list, but Photronics (NASDAQ:PLAB) is a worthy play. Photronics makes photomask products used in semiconductor manufacturing for customers in Europe, the U.S. and China. Its products are used in flat panel displays and integrated circuitry.
PLAB stock was down big earlier this year, but it has since rallied to break even in 2022. But you can expect plenty of volatility for this and other semiconductor stocks.
Revenue for the first quarter of the year came in at $204.51 million, which was better than the $192.37 million that analysts had expected. Earnings per share was 49 cents, which is an improvement over the 35 cent EPS that analysts suggested.
Small-Cap Growth Stocks: ePlus (PLUS)
Finally, we have ePlus (NASDAQ:PLUS), which is an information technology (IT) firm that builds integrated IT systems for companies in the U.S. and Europe.
Companies like ePlus are needed because the world is changing incredibly fast, especially for companies that are nose-down working on their own products that they don’t notice the massive technology changes in business software and equipment that can help their companies run better and faster.
ePlus stock is down about 5% so far this year, but that’s after a big drop over the last two months. So, there is plenty of headroom for PLUS stock to regain its momentum and move forward.
Revenue for the fourth quarter of fiscal 2022 was $451.52 million, which beat analysts’ expectations of $417.07 million. EPS was also a pleasant surprise, coming in at $1.01 per share versus the 74 cents that analysts expected.
On the date of publication, Louis Navellier had a long position in ACLS, ASIX, PAM and PLAB. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.