Small cap stocks are often overlooked by investors in favor of large cap growth stocks that seem to continually hit new highs. However, small cap value stocks have historically been one of the best performing equity asset classes. With that in mind, let’s take a look at some top small cap stocks that are currently on sale.
One way to find small cap stocks that offer both growth and value is to use a stock screener. Zacks has a premium screen that looks for stocks with a market cap below $1 billion, a growth rate above 20%, a price-to-sales ratio under 1.0, and a Zacks Rank of Buy or Strong Buy. This screen returned 11 small cap stocks that fit the criteria.
Here are 5 top small cap stocks that offer both growth and value:
1. Astronics Corp. (ATRO)
Astronics serves the defense, aerospace, and other mission-critical industries. It has a market cap of $607 million and has seen its shares rise 35.8% in the last year. Astronics is still considered cheap with a P/S ratio of 0.9.
2. American Vanguard Corp. (AVD)
American Vanguard is a diversified specialty and agricultural products company with a market cap of $311 million. Its shares have sunk 44.3% in the last year, but it is considered cheap with a P/S ratio of just 0.6 and a forward P/E of 15.7.
3. Mativ Holdings, Inc. (MATV)
Mativ Holdings is a specialty materials company with a market cap of $979 million. Its shares are down 19% in the last year and are near 5-year lows, but it is cheap with a P/S ratio of just 0.4.
4. Quad/Graphics (QUAD)
Quad/Graphics is a global marketing experience company with a market cap of $254 million. Its shares are up 20.6% in the last year and it has a forward P/E of 6.6. Quad/Graphics also pays a dividend, which is rare for a small cap company.
5. Synchronoss Technologies, Inc. (SNCR)
Synchronoss Technologies is a pure play Cloud company with a market cap of $107 million. Its shares are up 28.7% in the last year but down 88% over the 5-year period. It is cheap with a P/S ratio of just 0.5.
These are just a few examples of small cap stocks that offer both growth and value. To learn more about these stocks and others, tune into this week’s episode of the Value Investor Podcast.
