10 Small-Cap Growth Stocks Analysts Love the Most

Investors who can stomach more risk stand to reap greater rewards.

(Image credit: Getty Images)

Investors who can stomach more risk stand to reap greater rewards. That’s where small-cap growth stocks come in, and they just might deserve a place in your buy-and-hold portfolio.

Research shows that growth stocks with small market capitalizations – market values between roughly $300 million and $3 billion – tend to outperform larger asset classes over time. Indeed, the so-called small firm effect was documented by Eugene Fama, a winner of the 2013 Nobel Prize in Economics.

“Because they usually are young and lack exposure, small-cap growth companies tend to fly under the radar,” writes financial services company Federated Investors. “They are less closely followed and understood by the community of securities analysts, which sometimes means they sell for less than their true or potential value, creating opportunities if the market comes to re-price their shares accordingly.”

To get a sense of which small-cap growth stocks look ripe for the picking these days, we screened the small-cap benchmark S&P SmallCap 600 Growth Index for stocks with the highest average analyst ratings. We limited ourselves to companies with market caps of at least $1 billion. Furthermore, our stocks had to have a minimum of five “Strong Buy” analyst recommendations.

S&P Global Market Intelligence surveys analysts’ ratings on stocks and scores them on a five-point scale, where 1.0 equals a “Strong Buy” and 5.0 means a “Strong Sell.” Any score lower than 3.0 means that analysts, on average, rate the stock as being buy-worthy. The closer the score gets to 1.0, the better.

Based on those criteria, here’s a look at the 10 best-rated small-cap growth stocks in the S&P SmallCap 600 Growth Index.

Data is as of May 15. Analysts’ ratings, provided by S&P Global Market Intelligence, are as of May 7. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Companies are listed by strength of analysts’ recommendations, where the last company holds the best rating.

Dan Burrows
Senior Investing Writer, Kiplinger.com

Dan Burrows is Kiplinger's senior investing writer, having joined the august publication full time in 2016.


A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange and hosted a weekly video segment on equities.


Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.


In his current role at Kiplinger, Dan writes about equities, fixed income, currencies, commodities, funds, macroeconomics and more.


Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.


Disclosure: Dan does not trade stocks or other securities. Rather, he dollar-cost averages into cheap funds and index funds and holds them forever in tax-advantaged accounts.