Small cap stocks are listed companies that have market capitalizations ranging from $300 million to $2 billion. Since the share prices of these companies can have big fluctuations over a short period of time, companies with market caps of up to $10 billion are also found in the small cap universe. Some of the stocks classified as small cap include cloud computing business Fastly Inc. (FSLY), fitness and wellness company Tivity Health Inc. (TVTY), and gaming firm Century Casinos Inc. (CNTY). As reflected by the Russell 2000 Index (RUT), small cap stocks have lagged far behind the S&P 500, posting a 12-month negative total return of 21.0% compared to a loss of 9.6% for the S&P. These numbers on market performance and in the three tables below are as of March 16, 2020.
Below, we'll look at the top small cap stocks for value, growth, and momentum for April 2020.
Small Cap Stocks with the Best Value
Here are the small cap stocks in the S&P 500 with the lowest 12-month trailing price-to-earnings (P/E) ratio in the sector. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Small Cap Stocks with the Best Value|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Southwestern Energy Co (SWN)||1.77||957.7||1.1|
|Harsco Corp. (HSC)||7.31||575.9||1.2|
|Northern Oil & Gas Inc. (NOG)||0.95||383.7||1.5|
- Southwestern Energy Co.: Southwestern Energy explores, develops, and produces natural gas and crude oil products, focusing on Texas. In FY 2019, Southwestern Energy reported net income attributable to common stock of $891 million, an increase of 66.5% year-over-year (YOY).
- Harsco Corp. Industrial services and engineered products business Harsco provides mill and scaffolding services, railway maintenance, and more.
- Northern Oil & Gas Inc.: Northern Oil & Gas is an oil and gas exploration and production company focused on the Rocky Mountain area of the U.S. In FY 2019, Northern Oil & Gas produced an average of 38,604 Boe per day, a production increase of 51% YOY.
Small Cap Stocks with the Fastest Earnings Growth
Here are the small cap stocks in the S&P 500 with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Small Cap Stocks with the Fastest Earnings Growth|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Virtus Investment Partners Inc. (VRTS)||84.87||0.7||28,200|
|Enphase Energy Inc. (ENPH)||32.86||4.0||8,700|
|PolyOne Corp. (POL)||18.90||1.7||4,190|
- Virtus Investment Partners Inc.: Virtus Investment Partners manages portfolios and investments for individuals and institutional clients, focusing on public equities, fixed income, and the real estate market.
- Enphase Energy Inc.: Enphase Energy provides solar energy cells and monitoring equipment for distributors, large installers, original equipment manufacturers, strategic partners, and homeowners. The company announced in March that it had delivered solar energy storage solutions to more than 18,000 homes.
- PolyOne Corp.: PolyOne creates polymer materials and services including color and additive concentrates, screen printing inks, and rubber latex compounds. The company recently announced a quarterly dividend of $0.2025 per share of common stock, to be paid on April 8, 2020.
Small Cap Stocks with the Most Momentum
These are the small cap stocks in the S&P 500 that had the greatest total return over the past 12 months.
|Small Cap Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Kodiak Sciences Inc. (KOD)||53.18||2.3||665.2|
|Axsome Therapeutics Inc. (AXSM)||61.24||2.3||487.7|
|Forty Seven Inc. (FTSV)||93.26||4.5||439.7|
|S&P 500 (SPY)||--||--||-9.6|
|Russell 2000 (RUT)||--||--||-21.0|
- Kodiak Sciences Inc.: Kodiak Sciences develops therapies for high-prevalence diseases of the eye. In 2019, Kodiak Sciences completed crucial clinical studies of its KSI-301, a drug treatment for certain types of macular degeneration.
- Axsome Therapeutics Inc.: Axsome Therapeutics is a biopharmaceutical company that develops drug treatments for central nervous system disorders as well as other health issues.
- Forty Seven Inc.: Forty Seven is a clinical-stage immuno-oncology company developing novel therapies to contribute to cancer treatment strategies. In early March, Forty Seven announced that Gilead Sciences, Inc. (GILD) would acquire the company for approximately $4.9 billion in a cash deal that's expected to close in the second quarter of this year.
YCharts. "Financial Data," Accessed March 16, 2020.
Southwestern Energy Co. "Southwestern Energy Announces Fourth Quarter and Full Year 2019 Results; Provides 2020 Guidance," Accessed March 17, 2020.
Northern Oil & Gas, Inc. "Northern Oil and Gas, Inc. Announces Fourth Quarter and Full Year 2019 Results," Accessed March 17, 2020.
Enphase Energy, Inc. "Enphase Energy Storage Installations Reach over 18,000 Homes," Accessed March 17, 2020.
PolyOne Corp. "PolyOne Corporation Announces Quarterly Dividend," Accessed March 17, 2020.
Kodiak Sciences, Inc. "Kodiak Sciences Announces Fourth Quarter and Full Year 2019 Financial Results and Recent Business Highlights," Accessed March 17, 2020.
Forty Seven, Inc. "Gilead to Acquire Forty Seven for $4.9 Billion," Accessed March 17, 2020.