MILLBURN, N.J. (Stockpickr) -- I am always in search of growth stocks. I am also always seeking out stocks that have unique blends of financial metrics that line up to try to help whittle an investment edge -- either on the long or short side.
Recently, I decided to seek out some excellent growth candidates by taking a look at small-cap stocks with market capitalization below $1 billion that were members of the Russell 3000 Index (RUA). To achieve the growth characteristics of my search, I further screened out stocks with price-earnings-to-growth, or PEG, ratios that were less than 1. In other words, these stocks are selling at a discount to their earnings growth. I made sure to eliminate stocks that carried any debt.
I wanted to be contrarian and culled out stocks with high short interest ratios. In other words, I sought out small-cap growth stocks that many people were betting would fail.Then I performed a fundamental review of these stocks to select those with business models that I felt were consistent with my economic outlook. What I arrived at was a portfolio of five small-cap growth stocks with high short interest. Let's take a closer look.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV