8 Best Micro Cap Stocks to Buy According to Analysts

4. Performant Financial Corporation (NASDAQ:PFMT)

Market Cap as Of October 29: $298.72 Million

Stock Upside Potential: 107.25%

Number of Hedge Fund Holders: 7

Performant Financial Corporation (NASDAQ:PFMT) is an industrial company that provides technology-enabled audit, recovery, and analytics services. The leading healthcare payment integrity services provider has enjoyed double-digit solid year-over-year growth, driven by an increase in commercial client implementations and the continued ramp under our CMS RAC Region 2 contract.

Consequently, it delivered solid second-quarter results, with revenues increasing to $29.4 million compared to $25.5 million for the same quarter last year. Amid the revenue growth, the net loss shrunk to $2 million from a net loss of $3.2 million in the prior year. Performant Financial Corporation (NASDAQ:PFMT) is one of the best micro-cap stocks to buy, according to analysts, as it continues to fuel growth with commercial implementation programs.

In the second quarter, the company implemented 20 commercial programs expected to contribute approximately $9 million in revenue at an annualized steady rate. Initiatives to drive efficiency and productivity are progressing as planned, with positive early results. Likewise, management remains committed to delivering innovative solutions and long-term value to clients and stakeholders.

Consequently, analysts on Wall Street maintain a Buy rating on Performant Financial Corporation (NASDAQ:PFMT) with an average price target of $8, implying a 107.25% upside potential from current levels.