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Small Growth Stocks Are on Sale. 3 That Are Worth a Look.


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Some of the fastest-growing small-cap companies have seen their stocks get hammered lately as investors worry about changes in the Federal Reserve’s monetary policy. That’s an opportunity to buy them on the cheap, if recent history is any guide.

The iShares Russell 2000 Growth Exchange-Traded Fund (ticker: IWO), which tracks small-capitalization growth companies, has tanked 13% since Nov. 8, when it hit its highest level since mid-February. The decline in these stocks has partially been driven by the Federal Reserve’s plan...