How do I find small company stocks?

1. Start With Screening

BetterInvesting offers Stock Screens on the Stock Ideas page of the Online Stock Tools Suite that help you narrow the universe of stocks. Helpful individual criteria can include:

  • Size Filter: Use the company size filter to select small companies. The BetterInvesting definition of a small-sized company is one that has less than $1 billion in revenue in the last fiscal year.

  • Growth Filters: Apply screens for company size and EPS growth (e.g., 5–10%+ annually) to stay within BetterInvesting's "quality growth" philosophy.

  • Quality Metrics: Look for companies with strong pre-tax profit margins, manageable debt-to-capital, and consistent ROE.

SSGPlus users also have access to the 'Small Company' predefined screen that screens for consistent small company stocks with growth rates at or above 12% among other criteria.
All of the screening results returned by any screen show the company size in the fifth column, 'Size'. Filter the screening results by entering 'S' in the results filter box at the bottom of the screening results.
 

2. BetterInvesting Weekly Screens

The Stock Ideas section of BetterInvesting's Weekly e-newsletter offers a stock screen every other week that may include valuable stock ideas for small companies. Not sure if you're signed up? Check your email settings in My Account. 

3. Check 5 in 5 TickerTalk Stock Ideas

'Five in Five' is a regular feature in our TickerTalk online program in which the panelists offer up stock ideas that may be worthy of further study. Check out the list of stock ideas going back more than four years on the page at:
TickerTalk | Better Investing

Check out the full-length Screening and Stock Ideas webinar at https://youtu.be/ehDhD7yjc9Q.

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