The latest data points to the fact that the U.S. economy is rapidly getting back on track.

With earnings season kicking in as we speak, that’s the thing topmost on investors’ minds.

The U.S. stock market gained on Jul 2 as investor optimism about market recovery from the COVID-19 crisis got a boost after the U.S. Labor Department reported an unexpected drop in unemployment rate.

FormFactor is a Zacks Rank #1 (Strong Buy) and they are reporting earnings on February 5 after the close. I see Wall Street is looking for $174M on top and $0.31 in EPS.

Today's stock picks include Veeva Systems, Formfactor and Momo.

One has its hand in the making of “virtually every electronic device in the world,” and trades at eight times earnings. All three have explosive earnings growth in the high double digits. Once earnings season starts expect these stocks to pop.

FORM owns a strategic position in the semiconductor manufacturing process, positioned between the front end and back end user. Their MEMS technology gives them a key competitive advantage in SoC, DRAM and FLASH memory markets.

The highest scoring names in small cap from 1 year ago (3/20/2013) returned 3,708 bps more than the S&P 500. The best performers have been RAD up 255%, CAMP up 205%, JAZZ up 163%, MDSO up 127%, GBX up 109%, and HOMB up 90%.

Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months.