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Top Small-Cap Tech Stocks Averaging 50% Forward EPS Growth
Seeking Alpha • • business
Key Points:
- Small-cap tech stocks have outperformed large-cap peers over the past year, offering more attractive earnings multiples and an average forward EPS growth of around 50%, making them appealing for investors seeking growth beyond AI mega-cap concentration.
- Software stocks are rebounding in 2026 after prior underperformance, driven by strong earnings reports from companies like Salesforce and Palantir, which have helped alleviate investor concerns about AI's disruptive impact.
- Seeking Alpha's quantitative analysis identified three small-cap tech stocks with strong forward earnings growth, focusing on AI-driven software and cloud-based communications technology as key growth areas.
- Steven Cress, Head of Quantitative Strategy at Seeking Alpha, emphasizes a data-driven, algorithmic approach to stock selection that removes emotional bias, providing investors with systematic, quantitative insights for portfolio building.
- The article discloses that the author holds no positions in the mentioned stocks and that past performance is not indicative of future results, with no personal investment advice being offered.
