Small-caps have seen modest buying pressure over the last couple of weeks, undoubtedly a welcomed development among market participants after an extended period of sideways action.

Large-cap technology has dominated headlines, but with the expectations of a rate cut from the Fed coming this year, small-caps look prime to enjoy positivity. Of course, investors should be aware of small-caps’ volatile nature, a critical aspect to keep in mind.

Analysts have become bullish on several small-caps, a list that includes EZCORP EZPW, GeoPark GPRK, and Newpark Resources NR. All three sport a favorable Zacks Rank, a favorable development. Let’s take a closer look at each.

EZCORP Posts Record Q2 Sales

EZCORP establishes, acquires, and operates pawnshops that function as convenient consumer credit sources and value-oriented specialty retailers of previously owned merchandise. Analysts have raised their earnings expectations, landing the stock into a Zacks Rank #2 (Buy).

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Favorable quarterly results have aided share performance, with EZPW exceeding the Zacks Consensus EPS estimate by an average of 21% across its last four releases. The company’s growth has been solid, posting 21% year-over-year EPS growth on 10% higher sales throughout its latest quarter.

Quarterly revenue of $280 million reflected a Q2 record, with same-store sales growth of 3% throughout the period reflecting healthy continued demand. Below is a chart illustrating the company’s revenue on a quarterly basis.

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GeoPark Delivers Robust Dividend Growth

GeoPark is an explorer, operator, and consolidator of oil and gas that operates primarily in Chile, Colombia, Brazil, and Argentina. Shares have been hot over the past month amid broader strength in the Energy sector, up 12% compared to the S&P 500’s 3% gain.

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The company’s cash-generating abilities have allowed it to boast a shareholder-friendly nature. Throughout its latest period, it paid out $7.5 million in dividends and posted $87.6 million in operating cash flow.

Dividend growth is also robust, with GeoPark flexing a sizable 60% five-year annualized dividend growth rate. Shares currently yield 5.5% annually.

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Growth is expected to be strong, with consensus expectations for its current fiscal year suggesting 50% EPS growth on 5% higher sales. The stock presently sports a Style Score of ‘B’ for Growth.

Newpark Resources Enjoys Margin Expansion

Newpark Resources is a worldwide provider of value-added drilling fluid systems and composite matting systems for use in oilfields and other commercial markets. The earnings estimate revisions trend has been particularly bullish for its current fiscal year, highlighted below.

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Up 20% in 2024, shares have outperformed nicely, with NR’s latest set of quarterly results bringing post-earnings fireworks. The company has enjoyed margin expansion thanks to positive impacts from improved pricing and restructuring actions in its Fluids Systems segment, aiding its profitability nicely.

Please note that the chart below is on a trailing twelve-month basis.

Image Source: Zacks Investment Research

Like GPRK, the company’s growth profile is visibly bright, with the current $0.35 Zacks Consensus EPS estimate suggesting 120% growth. The stock carries a style score of ‘A’ for growth.

Bottom Line

While small-caps have been seemingly shoved to the side in favor of large-cap technology excitement, several, including EZCORP EZPW, GeoPark GPRK, and Newpark Resources NR, have begun enjoying positive earnings estimate revisions, a highly favorable development.

As previously mentioned, investors should be aware of small-caps’ volatile nature, as they can experience spooky price swings.

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EZCORP, Inc. (EZPW) : Free Stock Analysis Report

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