{"url":"https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent?mailingid=45206974&messageid=must_reads&mr_free_article=true&piano=mra1&position=must_reads_a0_freeread&serial=45206974.1975982","title":"5 Small Caps With 125%+ Forward EPS Growth","domain":"seekingalpha.com","imageUrl":"https://images.pexels.com/photos/7567567/pexels-photo-7567567.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"small cap stocks","category":"Tech","language":"en","slug":"d7719f75","id":"d7719f75-e8ff-4e78-84c2-175d00ccc856","description":"Seeking Alpha's SA Quant ranks five small-cap stocks with forward EPS growth over 125%, backed by strong revisions and fundamentals.","summary":"## TL;DR\n- Seeking Alpha's SA Quant ranks five small-cap stocks with forward EPS growth over **125%**, backed by strong revisions and fundamentals.\n- Stocks are **IRWD** (**231%** growth, $592M cap), **ICHR** (**130%**, $2B), **CMP** (**133%**, $1B), **CGNT** (**133%**, $593M), and **AVAH** (**127%**, $1.35B).\n- These picks highlight small-cap rotation potential amid AI productivity gains and lower rates, offering sector discounts versus peers.[[1]](https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125)[[2]](https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent)\n\n## The story at a glance\nSeeking Alpha Quant Team leader Steven Cress highlights five small-cap stocks selected by the SA Quant system for forward EPS growth above **125%**. The companies are Ironwood Pharmaceuticals (**IRWD**), Ichor Holdings (**ICHR**), Compass Minerals (**CMP**), Cognyte Software (**CGNT**), and Aveanna Healthcare (**AVAH**). This comes amid small-cap outperformance versus mega-caps, driven by market rotation, rate shifts, and AI efficiencies. Small caps like Russell 2000 names stand to gain more from cost reductions than large caps.[[1]](https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125)[[2]](https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent)\n\n## Key points\n- SA Quant screens for small caps (under $2B-$3B market cap typically) with forward EPS growth >**125%**, positive earnings revisions, Strong Buy or Buy ratings, and discounts to sector averages on metrics like PEG or P/E.\n- **IRWD** (biotech, $592M cap): **231%** EPS growth; LINZESS GI drug holds **45%** adult IBS-C market; trades at **2.7x** forward earnings vs. sector **17x** (84% discount).[[1]](https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125)\n- **ICHR** (semiconductors, $2B cap): **130%** growth; fluid delivery for chips, SpaceX exposure; 7 upward/0 downward EPS revisions in 90 days; 46% PEG discount.\n- **CMP** (materials, $1.04B cap): **133%** growth; world's largest underground salt mine; first positive net income since 2023 in Q1 2026 via cost cuts and price hikes.\n- **CGNT** (software, $593M cap): **133%** growth; cybersecurity/SIGINT contracts with governments/NATO; 18-20% valuation discount despite AI pressures.\n- **AVAH** (healthcare services, $1.35B cap): **127%** growth; pediatric home care benefits from shift to lower-cost home settings; 8 straight quarterly EPS beats.\n\n## Details and context\nThe article uses Seeking Alpha's proprietary Quant model, which grades stocks on growth, value, profitability, EPS revisions, and momentum across 100+ metrics versus peers. Selection emphasizes small caps with explosive projected earnings amid a rotation from mega-caps—small caps have beaten Nasdaq 100 by double digits recently.[[2]](https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent)\n\nContext includes Wells Fargo analysis: 1% labor cost cut boosts Russell 2000 earnings by **6.1%** (vs. **2%** for S&P 500), aiding small caps via AI productivity. Stocks trade at discounts (e.g., 42-84% to sectors), but small-cap volatility ties to macro factors like rates and geopolitics.[[1]](https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125)\n\nThese span healthcare (2), tech (2), materials (1), fitting small-cap diversification.\n\n## Key quotes\n> \"SA Quant identified five small-cap stocks with forward EPS growth above 125%, supported by strong earnings revisions and solid fundamentals.\"[[2]](https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent)\n\n## Why it matters\nSmall caps offer higher growth leverage from efficiency gains, potentially widening the rotation as rates ease.  \nInvestors get concrete picks with **Strong Buy/Buy** ratings, high EPS projections, and valuation discounts for diversified exposure beyond mega-tech.  \nWatch Q1 2026 earnings for EPS delivery and revisions; outcomes could confirm or challenge the **125%+** growth thesis amid volatility.[[1]](https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125)","hashtags":["#smallcaps","#investing","#epsgrowth","#quant","#stocks"],"sources":[{"url":"https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent?mailingid=45206974&messageid=must_reads&mr_free_article=true&piano=mra1&position=must_reads_a0_freeread&serial=45206974.1975982","title":"Original article"},{"url":"https://finanza.economia-italia.com/azioni-small-cap-crescita-eps-125","title":""},{"url":"https://seekingalpha.com/article/4890351-best-5-small-cap-stocks-with-forward-eps-growth-above-125-percent","title":""}],"viewCount":2,"publishedAt":"2026-04-15T13:31:13.269Z","createdAt":"2026-04-15T13:31:13.269Z","articlePublishedAt":"2026-04-13T21:56:45.000Z"}