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Potential Winners: 3 Small-Cap Stocks Surging this Week

Every week, there are small, under-the-radar companies that see their share prices surge immensely.  Not all of these companies are worth being bullish on, but the Zacks Rank helps to find companies that might be worth taking a chance on.  Remember, successful companies surpass earnings expectations, and our ranking system does a great job of finding potential winners that can do this.   

Here are three such stocks seeing significant share price appreciation within the last week.  These companies have a Zacks Rank #2 (Buy) or better.  Each of these stocks has seen their earnings estimates revised upwards by analysts in the last 60 days.  In that same time frame, these companies have not received a single negative estimate revision from financial analysts for this quarter.

Vitae Pharmaceuticals, Inc-VTAE

Vitae Pharmaceuticals (VTAE) focuses on developing small molecule drugs in order to treat diseases.  The company is developing drugs to combat multiple ailments such as diabetes, Alzheimer’s, autoimmune disorders, atopic dermatitis, and acute coronary syndrome.  Over the last five trading sessions, VTAE has seen its shares rise by 12.17%.  Today alone, shares are up 5.28%. 

Vitae Parmaceuticals is a Zacks Rank #2 (Buy).  In the last 60 days, five analysts revised their earnings estimates upwards for this quarter.  Our EPS consensus has moved upwards in the last 90 days.  3 months ago, our EPS consensus estimated earnings of $-0.59 per share.  Now, our earnings consensus is higher, and it estimates EPS of $-0.50 per share for this quarter.  VTAE beat our EPS consensus estimate last quarter by 16.13%.

Since March 16, the company’s shares have gained 75%.  The stock price rally stemmed from the fact that a clinical trial of the company’s VTP-43742 resulted in positive reactions from patients afflicted with psoriasis. 

CEO Jeff Hatfield said that “VTP-43742 has the potential to expand utilization of oral therapy in a variety of autoimmune disorders, such as psoriasis, psoriatic arthritis, rheumatoid arthritis, multiple sclerosis and inflammatory bowel disease with an effective, safe and well tolerated, once-a-day agent”.  If VTP-43742 can treat multiple diseases orally, the company could reap massive profits over time.

Prime Water Corporation-PRMW

Prime Water Corporation (PRMW) provides three and five gallon purified bottled water and water dispensers which are sold through major retailers nationwide.  Prime Water shares have gained 15.66% since last Thursday.

PRMW is a Zacks Rank #1 (Strong Buy).  The company has received three positive earnings estimate revisions from analysts over the last 60 days for this quarter.  In the last 30 days, our EPS consensus has trended upwards, going from an expected earnings loss of $-0.01, to $0.01. 

Prime Water has consistently beaten our earnings consensus in each of the last four quarters.  The company beat our consensus by at least 75% in each of those quarters, and the bottled water supplier has averaged a quarterly beat of 210.42% per quarter over that time span.

Epizyme Inc-EPZM

Epizyme Inc (EPZM) is a biopharmaceutical company.  It develops and commercializes therapeutics for cancers.  In the last week, Epizyme has seen its share price grow by 11.62%.  The company’s shares are 6.4% higher today.

EPZM is a Zacks Rank #2 (Buy).  In the last two months, the corporation has seen four analysts revising their earnings estimates upwards this quarter.  Our EPS consensus estimate for Epizyme has trended upwards over the last 30 days, going from an estimate of $-0.61 to $-0.47 per share. 

Since February, EPZM shares have climbed 43.51% higher.  It should be noted that EPZM beat our EPS consensus by 14.52% last quarter.  On February 8, the clinical stage biopharmaceutical company announced that its first-in-class EZH2 inhibitor, tazemetostat, was granted orphan drug status from the FDA.  The inhibitor is supposed to aid in the treatment of malignant rhabdoid tumors (MRTs).   

The Zacks Rank is a truly marvelous trading tool.  Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years!  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PRIMO WATER CP (PRMW): Free Stock Analysis Report
EPIZYME INC (EPZM): Free Stock Analysis Report
VITAE PHARM INC (VTAE): Free Stock Analysis Report
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