Investing

Fund Managers Loading the Boat on 5 Small-Cap Growth Winners

HubSpot

This stock has had a solid run since selling off late last year. HubSpot Inc. (NYSE: HUBS) is a cloud-based provider of inbound marketing tools such as website content management, blogging tools, email campaign, search engine optimization, social media monitoring and management, CRM and others for small businesses and mid-sized companies.

The company’s tools provide a single console for marketing professionals to generate new customer leads, convert leads to customers and customers to repeat customers.

This is a top technology holding among the managers in the survey, and the Jefferies report notes that 39.5% of those surveyed own shares in their portfolios.

The Wall Street consensus price target is set at $105.88. The stock was last seen at $101.55 a share, in a 52-week trading range of $62 to $124.45.

Wageworks

This stock has been hit hard this year and is offering investors a very good entry point. Wageworks Inc. (NYSE: WAGE) is engaged in administering consumer-directed benefits (CDBs). The company administers CBDs, including pretax spending accounts, such as HSAs, health and dependent care FSAs and HRAs, as well as commuter benefit services, including transit and parking programs, wellness programs, Consolidated Omnibus Budget Reconciliation Act (COBRA) and other employee benefits.

Employers financially benefit from its programs through reduced payroll taxes. It provides operational support services to its clients and its cross-functional teams, including customer support and claims processing.

Despite the beating the shares have taken since the beginning of the year, 39.2% of portfolio managers at funds hold the stock, and it is a good bet many have added shares as the company got hit.

The $77 consensus price objective compares with a recent share price of $43.85 and a 52-week trading range of $38.40 to $76.55.

Medidata Solutions

This stock has been caught in a trading range since last fall and could be ready to make a move higher. Medidata Solutions Inc. (NASDAQ: MDSO) is a global provider of a platform of cloud-based solutions for life sciences, enabling efficiency and quality throughout clinical development programs, aimed at accelerating processes, enhancing decision-making, minimizing operational risk, saving resources and enabling transformational trial strategies.

The company’s customers are pharmaceutical, biotech and medical device companies; academic institutions; contract research organizations; and other organizations engaged in clinical testing.

With its clear bias for technology and health care, 39% of fund managers also own this company.

The posted consensus price objective is $78.90. The stock was changing hands at $70.95. The 52-week trading range is $59.60 to $89.72.

These five top small-cap growth plays are better suited for aggressive accounts. With earnings still to come, and some of them trading close to 52-week highs, it may make sense for investors interested in owning shares to buy partial positions now and see how the first-quarter results fare.