8 Most Profitable Small-Cap Stocks To Invest In

5. Pathward Financial Inc. (NASDAQ:CASH)

Market Cap: $1.85 billion 

5-year Net Income Growth: 14.82%

TTM Net Income: $168.95 million

Number of Hedge Fund Holders as of Q2 2024: 21

Pathward Financial (NASDAQ:CASH) is a financial holding company with Pathward, National Association (the Bank) as its subsidiary. The Bank’s operations are divided into three segments: Commercial, Consumer, and Corporate Services/Other.

Its financial results for the first nine months of 2024 were very promising, and the company is continuing to execute its goals. It is delivering solid financial results with a focus on balance sheet management, led by the continuous evolution of its product offerings and risk-adjusted returns. Net income reached $41.8 million for Q2, with earnings per diluted share standing at $1.66. These results were driven by a 14% increase in net interest income compared to the same quarter in 2023.

Pathward Financial’s (NASDAQ:CASH) focus on the asset side of the balance sheet is on optimizing assets, sourcing and underwriting loans that have the highest risk-adjusted returns with discipline. It is also continually seeing a robust pipeline in government-guaranteed loans and working capital, both SBA and USDA. The company recently put in a new technology system to create efficiencies through the underwriting process and offers improved asset management capabilities that help maximize its efforts while slashing costs.

It is also seeing solid originations in consumer lending, and is continuing to co-innovate. The company expects to launch additional products and add partners in the future, allowing its partners to thrive and the company to grow. It takes the fifth spot on our list of the most profitable small cap stocks to invest in.