MarketWatch has compiled a list of 11 fast-growing small-cap stocks from the S&P SmallCap 600 that could get a boost from the Fed’s next move. Wall Street forecasts that their earnings will continue to rise at least through 2027, a pace three times faster than the average for index companies.

Criteria

Despite the popularity of the Russell 2000 for money managers to benchmark against, MarketWatch started with the S&P SmallCap 600 for a more conservative screen, because the Russell index includes hundreds of unprofitable companies. Recall that companies must show four quarters of consecutive profitability for initial inclusion in the S&P SmallCap 600.

The MarketWatch list included 11 S&P SmallCap 600 companies that met several criteria:

  • Starting with the S&P SmallCap 600, the list was cut to 221 companies that were profitable in 2022, 2023, and 2024, and are expected per analysts’ consensus estimates to be profitable for 2025, 2026, and 2027.

  • Then the list of 221 remaining companies was cut to 113 for which CAGRs for revenue from 2022 through 2024 were at least 5.1%, or roughly twice the 2.6% revenue CAGR for the index.

  • Then the list was narrowed to 11 companies with expected revenue CAGR from 2025 through 2027 of at least 14%, or roughly three times the expected revenue CAGR of 4.7% for the index.

Stock picks

  • Corcept Therapeutics: A pharmaceutical company focused exclusively on developing therapies for diseases affected by cortisol, the stress hormone. The FactSet consensus suggests revenue growth at a CAGR of 41.6% between 2025 and 2027. The average target price is $135.25 per share, implying nearly 95% upside.

  • LTC Properties: A REIT that invests in senior housing and healthcare properties. Wall Street expects revenue to grow at a CAGR of 32.1% between 2025 and 2027. The average target price is $37.83 per share, suggesting 4.3% upside.

  • Goosehead Insurance: Analysts expect revenue to grow at a CAGR of 22.8% over the next three years. The consensus target price is $111.55 per share, which implies the stock is undervalued by about 40% at current levels.

  • Astrana Health: A healthcare services provider. The Wall Street consensus projects revenue growth at a CAGR of 18.8% between 2025 and 2027. The average target price is $45 per share, suggesting 54% upside.

  • Enova International: An online financial services company. Wall Street forecasts revenue growth at a CAGR of 17.7% between 2025 and 2027. The average target price is $131.13 per share, for 12.4% upside.

  • Palomar Holdings: Specializes in property and casualty insurance services. Analysts expect revenue to grow at a CAGR of 16% between 2025 and 2027. The average target price is $165.30 per share, nearly 43% above the current quote.

  • Harmony Biosciences Holdings: A developer of therapies for neurological diseases. FactSet data shows revenue growth at a CAGR of 15.9% over the next three years. The average target price is $50.64 per share, which implies 56% upside.

  • Kinetik Holdings: An oil and gas producer. Wall Street projects revenue growth at a CAGR of 15.7% from 2025 to 2027. The average target price is $52.09 per share, indicating 23% upside.

  • Agilysys: A developer of software solutions and services for the hospitality industry. Analysts expect revenue growth at a CAGR of 14.8% between 2025 and 2027. The average target price is $130.40 per share, suggesting 21.9% upside.

  • Sterling Infrastructure: An infrastructure construction company. Wall Street forecasts revenue to grow at a CAGR of 14.6% between 2025 and 2027. The average target price is $355 per share, 10% above the current market price.

  • HA Sustainable Infrastructure Capital: An investor in renewable energy projects. Analysts expect revenue growth at a CAGR of 14.3% between 2025 and 2027. The average target price is $38.47 per share, which implies 36% upside.

The AI translation of this story was reviewed by a human editor.

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