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Small-Cap Earnings Solid: Play Stocks From Winning Sectors

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The Q1 earnings season has approached its end with 88.5% of the S&P 600 index having reported already. As per Earnings Trends issued on May 17, 2018, earnings are up 21.4% on 9.7% revenue growth. The beat ratio is 60.5% for EPS and 72.2% for the top line.

Against this backdrop, we would like to note which sectors performed the best in the Q1 earnings season and highlight a top-ranked stock from each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Transportation

As many as 87.5% companies from the S&P 500 index have reported so far. Total earnings for the transportation sector are up 42.4% on 15% higher revenues, with a blended beat ratio of 85.7%. 

Echo Global Logistics Inc.

This is a leading provider of technology-enabled transportation and supply chain management services.

Zacks Rank: #1

Year-over-Year Growth Earnings Est for Q2: 100%

Year-over-Year Growth Revenue Est for Q2: 28.08%

Market Cap: $771.68 million

Zacks Industry Rank: Top 29%

Construction

As many as 90.5% of companies have reported earrings. Earnings and revenues for the construction sector are up 56.3% and 17.3%, respectively, with the beat ratio being 52.6%.

Century Communities Inc. (CCS - Free Report)

This is a home building and construction company.

Zacks Rank: #1

Year-over-Year Growth Earnings Est for Q2: 57.58%

Year-over-Year Growth Revenue Est for Q2: 66.04%

Market Cap: $893.67 million

Zacks Industry Rank: Top 11%

Industrial Production

As many as 95.5% of companies have released financial results. Earnings and revenues for the construction sector are up 22.8% and 13.9%, respectively, while the beat ratio is 50%.

DMC Global Inc. (BOOM - Free Report)

It is a technology company, focusing on industrial infrastructure and oilfield products and services.

Zacks Rank: #1

Year-over-Year Growth Earnings Est for Q2: 950.0%

Year-over-Year Growth Revenue Est for Q2: 58.93%

Market Cap: $625.5 million

Zacks Industry Rank: Top 5%

Consumer Staples

About 81.8%% of companies have reported with strong Q1 earnings growth of 54.9% and revenue expansion of 10%. Its blended beat ratio is 44.4%.

Turning Point Brands Inc. (TPB - Free Report)

The company provides tobacco products.

Zacks Rank: #1

Year-over-Year Growth Earnings Est for Q2: 36.84%

Year-over-Year Growth Revenue Est for Q2: 12.22%

Market Cap: $456.71 million

Zacks Industry Rank: Bottom 36%

Business services

About 82.8%% of companies have come up with earnings. Q1 earnings growth is 21.2% and revenue expansion is 6.5%. Its blended beat ratio is 66.7%.

Heidrick & Struggles International Inc. (HSII - Free Report)

The company serves the executive talent and leadership needs of the world's top organizations.

Zacks Rank: #1

Year-over-Year Growth Earnings Est for Q2: 36.36%

Year-over-Year Growth Revenue Est for Q2: 4.58%

Market Cap: $730.4 million

Zacks Industry Rank: Top 22%

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