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Chicago, IL – February 1, 2023 – Today, Zacks Investment Ideas feature highlights Select Energy Services Inc. (WTTR - Free Report) , OneSpaWorld Holdings Ltd. (OSW - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) .
These 3 Small-Caps Boast Steep Growth Trajectories
Many investors prefer to park cash in small-cap stocks (market cap of less than $1 billion), and for an easy-to-understand reason: we all want to be among the first to get in on the next big thing.
Still, there is a lot of negative sentiment surrounding the stocks due to their volatile nature at times.
However, many small-cap stocks turn out to be big winners in the long run, and they typically have less analyst coverage, providing investors an opportunity to get in "early" before the crowd.
Three small-caps with inspiring growth trajectories – Select Energy Services Inc., OneSpaWorld Holdings Ltd. and Teekay Tankers Ltd. – could all be solid considerations for small-cap investors to add to their watchlists.
Let’s take a closer look at each one and its forecasted growth.
Teekay Tankers Ltd.
Teekay Tankers was formed by Teekay Corporation to provide international marine transportation of crude oil. Currently, TNK boasts a Zacks Rank #2 (Buy).
It’s impossible to ignore the company’s growth profile, with earnings forecasted to soar 240% in its current fiscal year (FY22) and a further 140% in FY23.
The projected earnings growth comes paired with forecasted Y/Y revenue upticks of 160% in FY22 and 93% in FY23.
Even with strong projected growth, TNK shares aren’t expensive; the company’s shares trade at a forward price-to-sales ratio of 0.9X, precisely in line with the five-year median and nicely beneath its Zacks sector average.
TNK carries a Style Score of “B” for Value.
And for the cherry on top, a favorable business environment has led to an increase in cash-generating abilities; in its latest release, TNK generated free cash flow of $67 million, growing 62% sequentially.
The company’s free cash flow has recovered nicely from 2021 lows.
OneSpaWorld Holdings Ltd.
OneSpaWorld is a provider and innovator in the fields of wellness, beauty, rejuvenation, and transformation on cruise ships and on land. Analysts have taken a bullish stance on the company’s bottom line outlook, pushing the stock into a Zacks Rank #1 (Strong Buy).
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate of $0.25 indicates a sizable 150% uptick in earnings Y/Y. And in FY23, estimates call for a further 90% of earnings growth.
OneSpaWorld’s’ top line is in fantastic shape as well, forecasted to expand nearly 280% in FY22 and 25% in FY23.
In addition, OSW has a highly impressive earnings track record, exceeding the Zacks Consensus EPS Estimate by an average of 84% over its last four.
Just in its latest release, OneSpaWorld penciled in a 115% bottom line beat paired with a 21% revenue surprise.
Select Energy Services Inc.
Select Energy Services provides water solutions to the U.S. unconventional oil and gas industry. Presently, WTTR carries a Zacks Rank #2 (Buy).
Like the companies above, WTTR’s top and bottom lines look to expand significantly; estimates suggest a Y/Y earnings increase of 230% in its current fiscal year and 90% in FY23.
Looking at the top line, forecasts call for Y/Y revenue upticks of 82% and 26% in FY22 and FY23, respectively.
The stock also pays a solid dividend, currently yielding 2.4% annually.
Bottom Line
Small-caps can get a bad rep due to their spooky price swings. Still, the negative sentiment feels overdone, as many of these stocks turn out to be long-term winners.
In addition, many small-caps carry less analyst coverage, giving investors a head start before others catch on.
All three small-caps above – Select Energy Services Inc., OneSpaWorld Holdings Ltd. and Teekay Tankers Ltd. – boast strong Zacks Ranks and have outperformed the general market over the last year, indicating positive momentum.
And, of course, all three are forecasted to witness significant earnings and revenue growth.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Select Energy, OneSpaWorld and Teekay Tankers
For Immediate Release
Chicago, IL – February 1, 2023 – Today, Zacks Investment Ideas feature highlights Select Energy Services Inc. (WTTR - Free Report) , OneSpaWorld Holdings Ltd. (OSW - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) .
These 3 Small-Caps Boast Steep Growth Trajectories
Many investors prefer to park cash in small-cap stocks (market cap of less than $1 billion), and for an easy-to-understand reason: we all want to be among the first to get in on the next big thing.
Still, there is a lot of negative sentiment surrounding the stocks due to their volatile nature at times.
However, many small-cap stocks turn out to be big winners in the long run, and they typically have less analyst coverage, providing investors an opportunity to get in "early" before the crowd.
Three small-caps with inspiring growth trajectories – Select Energy Services Inc., OneSpaWorld Holdings Ltd. and Teekay Tankers Ltd. – could all be solid considerations for small-cap investors to add to their watchlists.
Let’s take a closer look at each one and its forecasted growth.
Teekay Tankers Ltd.
Teekay Tankers was formed by Teekay Corporation to provide international marine transportation of crude oil. Currently, TNK boasts a Zacks Rank #2 (Buy).
It’s impossible to ignore the company’s growth profile, with earnings forecasted to soar 240% in its current fiscal year (FY22) and a further 140% in FY23.
The projected earnings growth comes paired with forecasted Y/Y revenue upticks of 160% in FY22 and 93% in FY23.
Even with strong projected growth, TNK shares aren’t expensive; the company’s shares trade at a forward price-to-sales ratio of 0.9X, precisely in line with the five-year median and nicely beneath its Zacks sector average.
TNK carries a Style Score of “B” for Value.
And for the cherry on top, a favorable business environment has led to an increase in cash-generating abilities; in its latest release, TNK generated free cash flow of $67 million, growing 62% sequentially.
The company’s free cash flow has recovered nicely from 2021 lows.
OneSpaWorld Holdings Ltd.
OneSpaWorld is a provider and innovator in the fields of wellness, beauty, rejuvenation, and transformation on cruise ships and on land. Analysts have taken a bullish stance on the company’s bottom line outlook, pushing the stock into a Zacks Rank #1 (Strong Buy).
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate of $0.25 indicates a sizable 150% uptick in earnings Y/Y. And in FY23, estimates call for a further 90% of earnings growth.
OneSpaWorld’s’ top line is in fantastic shape as well, forecasted to expand nearly 280% in FY22 and 25% in FY23.
In addition, OSW has a highly impressive earnings track record, exceeding the Zacks Consensus EPS Estimate by an average of 84% over its last four.
Just in its latest release, OneSpaWorld penciled in a 115% bottom line beat paired with a 21% revenue surprise.
Select Energy Services Inc.
Select Energy Services provides water solutions to the U.S. unconventional oil and gas industry. Presently, WTTR carries a Zacks Rank #2 (Buy).
Like the companies above, WTTR’s top and bottom lines look to expand significantly; estimates suggest a Y/Y earnings increase of 230% in its current fiscal year and 90% in FY23.
Looking at the top line, forecasts call for Y/Y revenue upticks of 82% and 26% in FY22 and FY23, respectively.
The stock also pays a solid dividend, currently yielding 2.4% annually.
Bottom Line
Small-caps can get a bad rep due to their spooky price swings. Still, the negative sentiment feels overdone, as many of these stocks turn out to be long-term winners.
In addition, many small-caps carry less analyst coverage, giving investors a head start before others catch on.
All three small-caps above – Select Energy Services Inc., OneSpaWorld Holdings Ltd. and Teekay Tankers Ltd. – boast strong Zacks Ranks and have outperformed the general market over the last year, indicating positive momentum.
And, of course, all three are forecasted to witness significant earnings and revenue growth.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.