The U.S. economy is on the recovery path, with COVID-19 related restrictions being relaxed and industrial activities reopening. Small-cap stocks have been making a solid comeback in this scenario thanks in-part to government stimulus checks, especially to small- and medium-sized businesses (SMBs), and their access to cheap capital amid the low interest rate environment…
Investors’ increasing interest in the small-cap stocks is evident in the SPDR S&P 600 Small Cap ETF’s (SLY) 14.1% returns over the past six months.
So, for investors who want to invest in stocks with immense growth potential and can tolerate a level of market volatility, we believe Oxford Industries, Inc. (OXM – Get Rating) and NextGen Healthcare, Inc. (NXGN – Get Rating) could be solid picks.
Oxford Industries, Inc. (OXM – Get Rating)
OXM is an international apparel design, sourcing and marketing company that features a portfolio of owned lifestyle brands that include Tommy Bahama and Lilly Pulitzer, as well as owned and licensed brands of tailored clothing and golf apparel. OXM has a $1.70 billion market capitalization. OXM is based in Atlanta, Ga.
The company’s revenue for its first fiscal quarter, ended May 1, 2021, increased 65.7% year-over-year to $265.76 million. The company’s adjusted consolidated net income came in at $31.70 million, compared to an $18.6 million net loss in the year-ago period. Also, its adjusted EPS came in at $1.89, compared to a $1.12 loss in the prior-year period.
OXM’s levered free cash flow increased at a 58.3% CAGR over the past three years. For the current year, analysts expect OXM’s EPS and revenue to increase 387.9% and 39.7%, respectively, from the prior-year quarter to $5.21 and $1.05 billion. OXM also surpassed consensus EPS estimates in three of the trailing four quarters. The stock has rallied 136.9% over the past year to close Friday’s trading session at $100.55.
It’s no surprise that OXM has an overall B rating, which equates to Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
The stock has an A grade for Growth and Quality, and a B grade for Momentum. Click here to see OXM’s ratings for Value, Stability, and Sentiment also.
OXM is ranked #13 of 65 stocks in the A-rated Fashion & Luxury industry.
NextGen Healthcare, Inc. (NXGN – Get Rating)
NXGN provides healthcare software solutions and services to ambulatory, population health management, electronic data interchange, interoperability, and consulting services. Irvine, Calif.-based NXGN has a $1.10 billion market capitalization.
For its fiscal fourth quarter ended March 31, 2021, the company’s revenues increased 5.7% year-over-year to $144.19 million. NXGN’s non-GAAP net income came in at $13.99 million, which represents a 3.6% rise from the prior-year quarter. Also, its non-GAAP EPS came in at…
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