#Micro cap stocks 2016 drivers

One reason why the company's EPS growth is so strong is its ability to leverage growing sales against its fixed costs. That increase led to top- and bottom-line growth of 6% and 39% in the quarter versus last year, respectively. In the third quarter, WebMD reports that monthly unique visitors rose 8% to 206 million users and that those users viewed 4 billion web pages, up 11% from a year ago. Todd Campbell : One small cap company that investors might want to have in portfolios is WebMD Health ( WBMD ).ДЄn increasingly older population fueled by 10,000 baby boomers turning 65 daily means more people requiring healthcare than ever before and since it can be tough figuring out which company is going to develop the next game-changing medicine, a better way for investors to participate in this trend may be to focus on companies that provide healthcare content, such as WebMD. When the market turns, those picking up shares of Denbury in 2016 could turn a fine profit. While we wait for that to happen, it could give investors a nice long window to accumulate shares in Denbury, which trade for less than 40 cents to the dollar of tangible book value right now. It may take a while for the energy market to turn around, but the lack of investments as of late will lead to a quick decline in production. However, based on its most recent earnings, it may be able to get by for a while at today's oil prices.

Lots of people are getting out of Denbury right now because they fear that the company's book of hedges-a suite of futures contracts written a while ago to ensure higher oil prices вЂ“ is starting to expire. Unlike shale wells that decline very quickly and require high levels of maintenance capital, Denbury's preferred production method вЂ“ repressurizing mature reservoirs by injecting CO2- requires much less capital to keep current production levels, which means that the company has been able to preserve cash and maintain better balance sheet health than most during the recent crash. It may sound a bit out there to consider adding an oil and gas producer to your portfolio right now, but hear me out.

Tyler Crowe: I'll be the first to admit that this is a bit of a speculative pick, but I think one small cap company that is worth considering for your portfolio in 2016 is Denbury Resources ( DNR ). Read on to get some solid ideas for your consideration. To celebrate the New Year, we asked five of our Motley Fool contributors to weigh in with their thoughts on which small-cap stocks could have the best prospects for 2016 and beyond.

#Micro cap stocks 2016 drivers

Small-cap stocks are the growth drivers for many investors' portfolios, giving them the opportunity to find an investment that can turn modest investments into life-changing wealth.