Friday, February 11, 2011

5 Small Caps you can't ignore

With 600 stocks in the S&P 600 Small Cap Index how do you decide which ones should be on your watch lists?  This morning I used Barchart to screen all 600 and find those with the most consistent momentum.  Here are the 5 you can't ignore.

Take-Two Interactive Software (TTWO) -- a leading worldwide developer, publisher and distributor of interactive software games. The company's software operates on multimedia personal computers and video game console platforms. They are one of the largest distributors of interactive software games in the United States and one of the top publishers of interactive software games in Europe.
Technical Analysis -- 100% Barchart technical buy signal with 9 new highs and a price appreciation of 20.66% in the last month,  Trades around 15.42 with a 50 day moving average of 12.68 and a rising Relative Strength Index of 80.63%

Fundamental Analysis -- Wall Street brokerages have published 8 buy and 11 hold recommendations.  Sales projected to increase by 16.40% next year. Earnings estimated to increase by 15.60% next year and 13.75% annually for the next 5 years.

Investor Sentiment -- Motley Fool CAPS members vote 1,148 to 86 that the stock will beat the market and the All Stars agree by 384 to 20.  Fool notes that 17 of the last 18 Wall Street columnists articles have been positive.

Veeco Instruments (VECO) -- designs, manufactures, markets and services a broad line of precision beam etching and surface measurement systems used in the manufacture of microelectronic products. It sells its products worldwide to many of the leading semiconductor and data storage manufacturers. In addition, it sells its products to companies in the flat panel display and high frequency device industries, as well as to other industries, research and development centers and universities.
Technical Analysis -- 100% Barchart technical buy signals with 3 new highs and a price appreciation of 5.19% in the last month. Trades around 49.49 with a 50 day moving average of 45.04 and a rising Relative Strength Index of 65.27%

Fundamental Analysis -- Wall Street brokerages have 13 buy and 5 hold recommendations published for their clients.  Sales are projected to increase by 14.90% this year and earnings are estimated to increase by 12.90% this year and 13.33% annually for the next 5 years.

Investor Sentiment -- The CAPS members on Motley Fool vote 407 to 28 that the stock will beat the market and the All Stars agree with a vote of 143 to 5.  Fool notes that Wall Street columnists articles have been positive 11 to 1.

United Natural Foods (UNFI) -- the leading independent national distributor of natural foods and related products in the United States. The company is the primary supplier to a majority of its customers, offering high-quality natural products consisting of groceries and general merchandise,nutritional supplements, bulk and food service products, personal care items, perishables and frozen foods. 
Technical Analysis -- 100% Barchart technical buy signal with 6 new highs and a price appreciation of 8.45% in the last month.  Trades around 40.69 with a 50 day moving average of 37.45 and a climbing Relative Strength Index of 72.88%.

Fundamental Analysis -- Wall Street brokerages have 7 buy and 7 hold recommendations published for their clients.  Sales are projected to increase by 17.50% this year and 9.80% next year.  Earnings are estimated to increase by 7.00% this year, 14.30% next year and 15.33% annually for the next 5 years.

Investor Sentiment -- The CAPS members on Motley Fool vote 243 to 36 that the stock will beat the market with the All Stars in agreement 82 to 5.  Fool notes that 7 of the last 9 Wall Street columnists articles have been positive.

Watts Water Technologies (WTS) -- designs, manufactures and sells an extensive line of products to the water quality and water regulation and control markets.
Technical Analysis -- 100% Barchsrt technical buy signals with 5 new highs and a price appreciation of 6.90% in the last month.  Trades around 39.37 with a 50 day moving average of 36.25 and a rising Relative strength Index of 67.79%

Fundamental Analysis -- Wall Street brokerages have 2 buy and 13 hold recommendations published for their clients.  Sales are expected to increase by 3.50% this year and 5.40% next year.  Earnings are estimated to increase by 29.90% this year,  12.50% next year and 12.75% annually for the next 5 years.

Investor Sentiment -- On Motley Fool the CAPS members vote 347 to 16 that the stock will beat the market and the All Stars agree 127 to 2.  Fool notes that the last 8 Wall Street columnists articles about the stock have all been positive.

Wright Express (WXS) --  a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry. Wright Express provides these services for commercial and government fleets. Wright Express markets these services directly as well as through strategic relationships, and offers a MasterCard-branded corporate card.
Technical Analysis -- 100% Barchart technical buy signal with 4 new highs and a price appreciation of 10.96% in the last month.  Trades around 52.23 with a 50 day moving average of 46.77 and a Relative Strength Index of 70.82%.

Fundamental Analysis -- Wall Street brokerages have 2 buy and 7 hold recommendations published for their clients.  Sales are projected to increase by 21.30% this year and 21.50% next year.  Earnings are estimated to increase by 25.20% this year, 16.50% next year and 9.58% annually for the next 5 years.

Investor Sentiment -- CAPS members on Motley Fool vote 65 to 8 that the stock will beat the market with the All Stars voting 26 to 1 for the same result.  Fool notes that there have been 3 positive articles by Wall Street columnists.

Well there you have 5 S&P Small Cap companies that have positive and consistent price momentum, Wall Street brokerage buy recommendations based on projections of increased sales and earnings and a wide and positive general investor following.

Jim Van Meerten is a professional investor with over 40 year experience in investing in stocks, mutual funds and ETFs.  He shares his knowledge on Barchart in his daily blogs -- Barchart Portfolio Blogs.







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