Small-cap stocks with mid-range forward P/E list

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Small-cap outperformance has narrowed over the last couple of weeks as investor caution increased, with volatility and geopolitical risk weighing on risk appetite and narrowing the performance gap vs. large caps.

In light of this, below is a list of the top 10 small-cap stocks across various sectors including energy, technology, industrials, and homebuilding, ranked based on their forward price-to-earnings ratio between 30 to 0 and restricted to small-cap market capitalizations.

The list is topped by Summit Midstream (SMC [https://seekingalpha.com/symbol/SMC]), with a ratio of 29.83. PDF Solutions (PDFS [https://seekingalpha.com/symbol/PDFS]) and Napco Security Technologies (NSSC [https://seekingalpha.com/symbol/NSSC]) are next, followed by Ethos Technologies (LIFE [https://seekingalpha.com/symbol/LIFE]) and Red Violet (RDVT [https://seekingalpha.com/symbol/RDVT]) rounding out the top five.

The list represents a diverse range of sectors, from software companies like Semrush Holdings and Appian Corporation to energy firms like Forum Energy Technologies and homebuilder Beazer Homes USA. Valuation grades across the list vary significantly, ranging from an “A-” for PAR Technology Corporation to an “F” for PDF Solutions, Inc.

P/E FWD (forward price-to-earnings ratio) is a valuation multiple that compares a stock’s current share price to expected (forward-looking) earnings per share, typically based on analysts’ consensus estimates for the upcoming year.

Here is the list:

*
Summit Midstream Corporation (SMC [https://seekingalpha.com/symbol/SMC]), P/E fwd ratio: 29.83, Valuation Grade: Not Covered

*
PDF Solutions (PDFS [https://seekingalpha.com/symbol/PDFS]), P/E fwd ratio: 29.72, Valuation Grade: F

*
Napco Security Technologies (NSSC [https://seekingalpha.com/symbol/NSSC]), P/E fwd ratio: 29.65, Valuation Grade: D-

*
Red Violet (RDVT [https://seekingalpha.com/symbol/RDVT]), P/E fwd ratio: 29.52, Valuation Grade: D+

*
Semrush Holdings, Inc. (SEMR [https://seekingalpha.com/symbol/SEMR]), P/E fwd ratio: 29.38, Valuation Grade: D+

*
Ducommun Incorporated (DCO [https://seekingalpha.com/symbol/DCO]), P/E fwd ratio: 29.29, Valuation Grade: C

*
Forum Energy Technologies, Inc. (FET [https://seekingalpha.com/symbol/FET]), P/E fwd ratio: 29.17, Valuation Grade: D-

*
Appian Corporation (APPN [https://seekingalpha.com/symbol/APPN]), P/E fwd ratio: 28.72, Valuation Grade: D-

*
PAR Technology Corporation (PAR [https://seekingalpha.com/symbol/PAR]), P/E fwd ratio: 28.51, Valuation Grade: A-

*
Compass Minerals International, Inc. (CMP [https://seekingalpha.com/symbol/CMP]), P/E fwd ratio: 28.49, Valuation Grade: B

Small-Cap ETFs: (IJR [https://seekingalpha.com/symbol/IJR]), (IWM [https://seekingalpha.com/symbol/IWM]), (VB [https://seekingalpha.com/symbol/VB]), (VBR [https://seekingalpha.com/symbol/VBR]), (VBK [https://seekingalpha.com/symbol/VBK]), (SCHA [https://seekingalpha.com/symbol/SCHA]), (SPSM [https://seekingalpha.com/symbol/SPSM]), and (DFAS [https://seekingalpha.com/symbol/DFAS])

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