Buying stocks on a dip seems a credible investment idea. The goal of investing is to either buy low and sell high, or to sell high — going short — and buy lower to cover your positions. Finding small-cap growth stocks to buy on the dip appear to be riskier than buying large-cap stocks during those pullbacks. But remember that opportunities exist all the time across all industries, sectors and sizes of companies.
These small-cap growth stocks to buy on the dip present not only growth in revenue and EPS, but they have attractive valuations and solid fundamentals.
Buying a stock at a steep discount is worthless if the fundamentals of the company are bad. Such a move is pure speculation with very low odds of success.
Let’s have a closer look at these small-cap growth stocks to buy on the dip.
| AGRO | Adecoagro | $7.80 |
| EZPW | EZCorp | $7.49 |
| METC | Ramaco Resources | $11.78 |
| MX | Magnachip Semiconductor | $16.08 |
| PANL | Pangea Logistics Solutions | $4.76 |
| BXC | Blielinx Holdings | $74.39 |
| BBGI | Beasley Broadcast Group | $1.27 |
Adecoagro (AGRO)
Adecoagro (NYSE:AGRO) has developed a sustainable business model producing food and renewable energy, focusing on sugar; ethanol and energy; dairy; rice; and other crops as individual businesses.
The shares of Adecoagro are but have witnessed a three-month selloff of 35%. The firm saw its sales grow by 35.19% in 2021, but this momentum play is all about net income growth.
The firm turned profitable in 2020 after losing money in 2019 and in 2018 reporting a net income of $412,000. Then in 2021, net income increased 31,615.78% to $130.67 million.
A second growth trend you should watch for the firm is the one for . In 2019, 2020, and 2021 the free cash flow growth was 141.76%, 207.18%, and 115.92% respectively.
The stock has a and a one-year target of $14.40 for an upside potential of 80%.
EZCORP (EZPW)
EZCORP (NASDAQ:EZPW) is “a leading provider of and Latin America.”
Customers of the company can sell goods such as gold and diamond jewelry, electronics, video games, musical instruments and sporting goods to earn cash.
The shares are more or less flat in 2022 . The year-over-year EBITDA growth is 216.15% and the firm has also long-term forward EPS growth of 24.5%.
In 2021 the company returned to profitability with to $8.61 million.
There are more things to like about EZPW stock, like its consistent positive free cash flow generation. This trend is ideal for a higher valuation and for a stock price rebound and rally.
The analysts like the stock, as it has a one-year target of $10.17 .
Ramaco Resources (METC)
Ramaco Resources (NASDAQ:METC) is a producer of metallurgical coal. The shares have losses of approximately 17% in 2022 but have gains of nearly 88% in the past year.
This stock also has growth in sales, net income, and EBITDA.
Looking at the five-year trend for key financial metrics of METC stocks, , and the firm returned to profitability with a net income growth of 910.25% to $39.8 million and a stunning EBITDA growth of 2,677.44% to $66.35.
The firm has also had . The operating cash flow growth YOY has been 1,660.78%, a remarkable figure.
The stock has a forward dividend yield of 4% and a one-year target estimate of $23, an upside potential of 95%.
Magnachip Semiconductor (MX)
Magnachip Semiconductor (NYSE:MX) “designs and manufactures” and its “innovative technologies span a wide range of applications in communications, IoT, consumer, computing, industrial and automotive applications.”
The company has reported growth in .
YOY is 48.84%, the EBIT growth YOY is 58.04% and the operating cash flow growth YoY is 940.38%. The EPS estimate is expected to increase from in the fiscal year 2023. Estimates for revenue also to increase, to $571.67 million in the fiscal year 2023 from $436.73 million in the fiscal year 2022.
The MX stock has a for an upside potential of 61%.
Pangaea Logistics Solutions (PANL)
Pangaea Logistics Solutions (NASDAQ:PANL) “is a global provider of comprehensive .”
The firm has also grown in not just one financial metric, , which is very bullish.
The EBITDA growth YOY is 151.56%, the EBIT Growth is 207.96% and diluted EPS growth is 232.53%.
In addition to the above metrics, the sales growth in 2021 was 87.55% to $718 million, and net income surged .
but has declined about 8% in the one-month period. Having a one-year target estimate of $7.17, the PANL stock could deliver gains of 51%.
BlueLinx Holdings (BXC)
BlueLinx Holdings (NYSE:BXC) is one of the largest building products distributors in the U.S. as its “product offering includes more than .”
This firm has a nice combination of , the ideal scenario for any business.
The sales growth has been increasing for the past two consecutive years, with growth of 17.44% in 2020 and to 38.09% in 2021. The company has managed to turn these sales into higher net profits in 2020 and in 2021, it reported even higher net income growth than sales growth. When this occurs, investors should pay attention as there is a very positive story.
Net income grew . There is more growth to like as the YOY EBIT growth is 138.35% and YOY diluted EPS growth of 146.98%.
and in 2021 which is highly bullish. The analysts like the stock, as it has a , an upside potential of 74%.
Beasley Broadcast Group (BBGI)
Beasley Broadcast Group (NASDAQ:BBGI) “is a multiplatform media company providing across the United States.”
The firm has reported and YOY EBITDA growth of 111.57%. On top of this, the good news is that the forward EBITDA growth is expected to be 73.72%.
The firm has also managed to narrow its net losses significantly in 2021 after a rough 2020. as there was a beat on both EPS and revenue.
This is a bullish factor that could soon lead to a rebound in the stock price. The BBGI stock has losses of nearly 33% in 2022, but then there is a potential upside of 138%.
On the date of publication, Stavros Georgiadis, CFA did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
