10 Small Cap Stocks With Positive Earnings Surprises
Scott’s Investments submits:
Below is a list of 10 small cap stocks with recent earnings surprises to consider in the short (or long) term. For the purpose of this monthly list, I define value as a stock with a projected current year PE of under 20 and a Price to Earnings growth ratio under 1. Small cap is defined as having a market capitalization under $1 billion. The earnings surprises are defined as stocks which have beaten estimates the past 2 quarters and have an average earnings surprise of 20% or more for the past 4 quarters. I also require stocks to be trading above their 200 day simple moving average. I use stockscreen123 as the tool and screener.
Last month’s portfolio can be seen here. Last month, the list outperformed at 7.44% (excluding any dividends) versus 4.03% for SPY and 6.16% for VBR, a small cap value ETF. Last months returned were bolstered Intevac (IVAC) at 16.96%, Kadant (KAI) at 18.2% and Power-One (PWER) at 20.54%. Only two of the 10 stocks had negative returns for the month, Sorl Auto Parts (SORL) -8.27% and Stein Mart (SMRT) -11.48%.
Complete Story »
View full post on Seeking Alpha Small Cap stocks
