10 Best Small-Cap Stocks to Buy Now According to Minerva Advisors

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2. The Eastern Company (NASDAQ:EML)

Number of Hedge Fund Holders: 7

At the end of the first quarter of 2024, Minerva Advisors reported owning 488,594 shares of The Eastern Company (NASDAQ:EML), worth $16,382,557. This investment constituted 10.03% of Minerva Advisors’ portfolio, according to regulatory filings.

According to an Investment Doctor analyst, despite the stock seeming overvalued based on its 2023 earnings and cash flow, The Eastern Company (NASDAQ:EML)’s dedication to reaching a 30% gross margin soon still makes it interesting. The analyst forecasts a 5% average revenue increase over the next three years, aiming for a 29% gross margin just below the targeted 30%. This could lift revenue to $316 million, with a gross profit of over $91 million (up from $65 million in 2023), and potentially increase pre-tax profit by $17 million and net income by $13 million.

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