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Top Small Cap Stocks for September 2020

Mundane cap stocks are listed companies that have market capitalizations typically ranging from $300 million to $2 billion. Since the part prices of these companies can have big fluctuations over a short period of time, companies with market exceeds of up to $10 billion are also found in the small cap universe. Some of the stocks classified as small cap include biotechnology actors Akero Therapeutics Inc. (AKRO), Tupperware Brands Corp. (TUP), and cloud-computing business Fastly Inc. (FSLY).

Small cap stocks, as outlined by the Russell 2000 Index (RUT), have underperformed the broader market, providing investors with a total return of 9.2% beared to the S&P 500’s total return of 23.9% over the past 12 months. These market performance numbers and the statistics in the proposes below are as of August 26.

Here are the top 3 small cap stocks with the best value, the fastest earnings growth, and the most power.

Best Value Small Cap Stocks

These are the small cap stocks with the lowest 12-month trailing price-to-earnings (P/E) relationship. 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 manufactured.

Best Value Small Cap Stocks
Price ($) Market Cap ($M) 12-Month Trailing P/E Ratio
Unisys Corp. (UIS) 12.23 770.7 0.8
XBiotech Inc. (XBIT) 19.01 551.1 1.2
VirnetX Fend off Corp. (VHC) 4.84 343.9 1.2

Source: YCharts

  • Unisys Corp.: Unisys is an information technology (IT) consulting services company. The company outfits data analytics, mobility, network, security, and outsourcing services for a range of clients globally. For Q2, the company reported a net disadvantage of $76.5 million as revenue plunged 22.9% year-over-year (YOY). Approximately half of the decline was due to the negative impact of the COVID-19 pandemic.
  • XBiotech Inc.: XBiotech is a biopharmaceutical circle that discovers, develops, and commercializes monoclonal antibodies for treating a variety of diseases, including cancer, vascular bug, inflammatory skin disease, and diabetes. In August, the company said that it had identified True Human antibodies that could be cast-off for the treatment of COVID-19. The company also said that one of its antibody screening technologies received a key boost from the U.S. Commons and Drug Administration.
  • VirnetX Holding Corp.: Through subsidiaries, VirnetX develops software to facilitate real-time communications online. This incorporates voice over internet protocol, encryption, file transfer, streaming, and similar services.

Fastest Growing Insignificant Cap Stocks

These are the small cap stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Go up earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Ripening Small Cap Stocks
Price ($) Market Cap ($M) EPS Growth (%)
TTM Technologies Inc. (TTMI) 11.90 1,270 5,870
Textainer Group Holdings Ltd. (TGH) 11.86 632.1 2,900
Ichor Holdings Ltd. (ICHR) 26.91 617.6 2,900

Informant: YCharts

  • TTM Technologies Inc.: TTM manufactures circuit boards for use in a variety of electronics products, including routers, servers, memory modules, and cellular fake stations. For Q2 2020 ending July 29, TTM saw net sales increase by 8.2% YOY. CEO Tom Edman attributed the company’s success centre of the COVID-19 pandemic in part to its diversified mix of end markets.
  • Textainer Group Holdings Ltd.: Textainer Group is a holding company whose subsidiaries charter out intermodal shipping containers. Its primary business is the leasing of dry freight containers.
  • Ichor Holdings Ltd.: Holding company Ichor drafts, engineers, and builds fluid delivery subsystems for semiconductor equipment through its subsidiaries. Ichor reported YOY increases in net rummage sales, net income and operating income for Q2 2020.

Small Cap Stocks with the Most Momentum

These are the small cap stocks that had the highest aggregate return over the last 12 months.

Small Cap Stocks with the Most Momentum
Price ($) Market Cap ($B) 12-Month Footstep Total Return (%)
Novavax Inc. (NVAX) 113.11 6.9 1,710
Co-Diagnostics Inc. (CODX) 13.04 0.4 1,050
CarParts.com Inc. (PRTS) 14.40 0.7 1,030
S&P 500 N/A N/A 23.9
Russell 2000 Index (RUT) N/A N/A 9.2

Source: YCharts

  • Novavax Inc.: Novavax is a clinical fake biotechnology company that creates vaccines to address a wide range of infectious diseases using proprietary virus-like shred (VLP) technology. On August 24, the company announced that it had begun Phase 2 of the clinical trial of NVX-CoV2373, its COVID-19 vaccine runner.
  • Co-Diagnostics Inc.: Co-Diagnostics operates as a molecular diagnostics company that develops and manufactures diagnostics technology. The company’s diagnostics approaches enable molecular testing for organisms and genetic diseases. On August 20, the company announced that it had received elevated U.S. patent protection for its CoPrimer technology utilized in its COVID-19 test kit.
  • CarParts.com Inc.: CarParts.com is an online automobile parts retailer. Cosseting primarily to customers in the U.S., Canada, and the Philippines, the company offers an array of interior and exterior accessories, tools, auto congress, and other related products.

Article Sources

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  1. YCharts. “YCharts.” Accessed Aug. 27, 2020.

  2. Unisys Corp. “Unisys Augurs Second-Quarter Results,” Page 2. Accessed Aug. 27, 2020.

  3. XBiotech Inc. “XBiotech Discovers COVID-19 Candidate Therapy.” Accessed Aug. 27, 2020.

  4. XBiotech Inc. “XBiotech-Developed COVID-19 Proof Supports Convalescent Blood Treatments Now Approved Under FDA Emergency Use Authorization.” Accessed Aug. 27, 2020.

  5. TTM Technologies Inc. “TTM Technologies, Inc. Reports Economic Second Quarter 2020 Results.” Accessed Aug. 27, 2020.

  6. Ichor Holdings Ltd. “Ichor Holdings, Ltd. Announces Second Quarter 2020 Fiscal Results.” Accessed Aug. 27, 2020.

  7. Novavax Inc. “Novavax Initiates Phase 2 Portion of Phase 1/2 Clinical Trial of COVID-19 Vaccine.” Accessed Aug. 27, 2020.

  8. Co-Diagnostics Inc. “Co-Diagnostics, Inc. Acquires Enhanced U.S. Patent Protection for CoPrimer™ Technology Used in COVID-19 Test.” Accessed Aug. 27, 2020.

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