3 Small Cap Growth Stocks to Invest $2500 Into RIGHT NOW

NASDAQ: COUP | Coupa Software Incorporated News, Ratings, and Charts

COUP – West Pharmaceutical Services (WST), Coupa Software (COUP), and The Trade Desk (TTD) are small cap stocks growing fast.

Small-cap stocks are companies with market caps ranging between $300 million to $2 billion. As a whole, small-cap growth stocks, represented by the iShares Russell 2000 Growth ETF (IWO), have under performed the broader market, represented by the Vanguard Total Market ETF (VTI). That being said, if you pick the right small-cap stocks you can profit handsomely. 

The reason for that is because small cap stocks can earn money faster and grow faster than larger cap companies. This is great for your portfolio since there is more opportunity to make money in a shorter period of time. Plus, historically, small-cap stocks have higher long term average returns than large-cap stocks. They have also performed better than large-cap stocks during periods of economic recovery and strong market rallies. 

Here are three small-cap growth stocks growing fast.

West Pharmaceutical Services (WST)

WST is a major supplier of packaging components and distribution systems for injectable drugs and healthcare products. After dropping to a low of $129 at the end of March, the stock soared 78 percent as demand for drug delivery systems and injectable packaging grew following the Covid-19 pandemic. The company announced a strong first quarter with sales growth of 11 percent, while the company reaffirmed its guidance for 2020. 

The rally could extend further given the increase in demand for vaccines over the coming years, and the company is a dominant player in delivering vaccines. WST revenues have grown 29% percent from $1.4 billion in 2015 to $1.8 billion in 2019, while earnings have grown more rapidly from $1.33 to $3.27. The company also expects increased demand for its products, which should bode well for its stock.

WST is one of the top-rated stocks in our momentum-based POWR Ratings system. Overall, it is the #5 ranked stock in the #9 ranked industry (Medical – Devices & Equipment) with a 54.65% return year to date

Coupa Software (COUP)

COUP provides a cloud-based business spend management platform. In tough times, companies are under pressure to curb their spending. That plays into the COUP’s strength. The company has a spending management platform that enables customers to track their spending more efficiently. It offers advanced analytics, AI-powered benchmarking of performance and AI-flagging of suspicious activity. Plus, it is cloud-based, which is currently the “big thing”.

COUP has also been expanding its platform beyond cost tracking. For example, customers can now access Coupa Pay, a business-to-business payment solution. COUP can call some big-name companies as their customers, including Salesforce (CRM), Proctor & Gamble (PG), and Nvidia (NVDA). In March, COUP reported annual revenue of $389.7 million, which was up 50% year-over-year. Subscription revenue was up 48%.

COUP is holding a poker hand with 5 Aces. By that, I mean that all 5 scores of our exclusive POWR Ratings system are an A for the stock. It is also the #6 ranked stock in the Software – Business industry. 

The Trade Desk (TTD)

TTD operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns. TTD is up 56% year-to-date, even amid the coronavirus, where consumers aren’t spending, and brands have decreased advertising. The company provides programmatic advertising solutions for advertisers. That means that it leverages data to allocate ad dollars across various digital advertising channels, which helps to optimize the effectiveness of the ads. Most advertising analysts believe that data-driven advertising is the future of ads.

TTD blew away estimates in its latest earnings report. Analysts expected EPS of 0.09 a share, and TTD reported 0.5, which was a 455.56% surprise. The company also exceeded both profitability and revenue targets. TTD is widely considered a leader in data-driven advertising that still only represents a small fraction of the world’s $500 billion in ad spending. This should provide plenty of room for growth for the company.

Want More Great Investing Ideas?

9 “BUY THE DIP” Growth Stocks for 2020

Is the Bull S#*t Rally FINALLY Over?

7 “Safe-Haven” Dividend Stocks for Turbulent Times

Top 3 Investing Strategies for 2020

COUP shares were unchanged in after-hours trading Friday. Year-to-date, COUP has gained 110.79%, versus a -0.31% rise in the benchmark S&P 500 index during the same period.

About the Author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
COUPGet RatingGet RatingGet Rating
WSTGet RatingGet RatingGet Rating
TTDGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com

What is Jay Soloff's Stock of the Week?

Applying AI to their business products is where companies can gain an edge in the AI race. eGain (EGAN) is doing just that, and revitalizing its customer knowledge business in the process. Let's take a look at this stock that just released its latest earnings.

Why the Bull Market is Still in Charge?

It’s been nearly 2 months that the S&P 500 (SPY) has been mired in a trading range. That is why investment veteran Steve Reitmeister shares his latest insights to explain why a bull market is still in place...and how to target the best stocks and ETFs for the days ahead. Read on for the full story below...

3 Biotechs with Massive Growth Potential

These three biotech stocks have massive growth opportunities on the horizon, and could add a huge boost to any portfolio. They play in some of the most in demand markets on the planet, and have track records of finding ways to introduce products into those markets to capture big profits. Novo Nordisk (NVO), Regeneron (REGN) and Corcept Therapeutics (CORT) are deserving of a very close look right now.

1 Income Stock to BANK ON Now

One of the best ways to address risk is through diversity. With a strong balance sheet and solid earnings KB Financial (KB) provides a diverse option in the banking sector, with international exposure to mitigate some of the risk we’ve seen in U.S. banking this year.

The ODD Story Behind Thursday’s BIG Stock Rally

We have all been worried about what high inflation will do to the economy and stock market. And yet on Thursday inflation spiked again, yet amazingly the S&P 500 (SPY) had a great session. Investment veteran Steve Reitmeister shares the reasons why in his new market outlook with trading plan and top picks. Read on below for more...

Read More Stories

More Coupa Software Incorporated (COUP) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All COUP News