Elite Pharmaceuticals Inc. (ELTP) and TSS, Inc. (TSSI) are small cap stocks with Zacks’ Outperform ratings that recently experienced pullbacks despite strong quarterly performances. ELTP focuses on controlled-release generic drugs, particularly in the ADHD market, with total revenues up 78.3% in Q4 fiscal 2025. TSSI’s core business includes AI-enabled computer racks, experiencing 262% sales growth in Q2. Despite recent pullbacks, both companies are poised for growth with strong financials and market positions. ELTP is trading at 6.8X EV/Sales TTM, while TSSI is trading at 1.84X EV/Sales TTM.

Investors should consider these small cap stocks for potential growth opportunities.

Read more at Zacks Investment Research: 2 Outperform Rated Small Caps with Recent Pull-backs – August 11, 2025