5 Small Caps With 125%+ Forward EPS Growth

TL;DR

Seeking Alpha's SA Quant ranks five small-cap stocks with forward EPS growth over 125%, backed by strong revisions and fundamentals.
Stocks are IRWD (231% growth, $592M cap), ICHR (130%, $2B), CMP (133%, $1B), CGNT (133%, $593M), and AVAH (127%, $1.35B).
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)

The story at a glance

Seeking 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)

Key points

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.
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)
ICHR (semiconductors, $2B cap): 130% growth; fluid delivery for chips, SpaceX exposure; 7 upward/0 downward EPS revisions in 90 days; 46% PEG discount.
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.
CGNT (software, $593M cap): 133% growth; cybersecurity/SIGINT contracts with governments/NATO; 18-20% valuation discount despite AI pressures.
AVAH (healthcare services, $1.35B cap): 127% growth; pediatric home care benefits from shift to lower-cost home settings; 8 straight quarterly EPS beats.

Details and context

The 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)

Context 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)

These span healthcare (2), tech (2), materials (1), fitting small-cap diversification.

Key quotes

"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)

Why it matters

Small caps offer higher growth leverage from efficiency gains, potentially widening the rotation as rates ease.

Investors get concrete picks with Strong Buy/Buy ratings, high EPS projections, and valuation discounts for diversified exposure beyond mega-tech.

Watch 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)