The 5 Best Small Caps

Today I used Barchart to sort the S&P 600 Small Cap Index to find the stocks that have been hitting new highs most consistently over the past month.  My list includes Moog Inc (MOG.A), Financial Engines (FNGN), Employers Holdings (EIG), Matrix Services (MTRX), and Blucora (BCOR):

Moog Inc (MOG.A)

Barchart technical indicators:

• 64% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day 
• 16 new highs and up 9.54% in the last month
• Relative Strength Index 62.51%
• Barchart computes a technical support level at 56.80
• Recently traded at 57.38 with a 50 day moving average of 55.15

Financial Engines (FNGN)

Barchart technical indicators:

• 72% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 12.94% in the last month
• Relative Strength Index 70.43%
• Barchart computes a technical support level at 59.24
• Recently traded at 61.06 with a 50 day moving average of 54.11

Employers Holdings (EIG)

Barchart technical indicators:

• 88% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 10.36% in the last month
• Relative Strength Index 63.78%
• Barchart computes a technical support level at 29.11
• Recently traded at 29.41 with a 50 day moving average of 27.68

Matrix Services (MTRX)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 19.06% in the last month
• Relative Strength Index 77.28%
• Barchart computes a technical support level at 17.99
• Recently traded at 19.18 with a 50 day moving average of 16.72

Blucora (BCOR)

Barchart technical indicators:

• 96% Barchart technical buy signals
• Trend Spotter buy signal
• Above its 20, 50 and 100 day moving averages
• 16 new highs and up 16.38% in the last month
• Relative Strength Index 81.13%
• Barchart computes a technical support level at 23.05
• Recently traded at 23.52 with a 50 day moving average of 20.93

Employers Holdings -- sell signals

This morning I detected sell signals on Barchart from Employers Holdings (EIG) and deleted it from the Barchart Van Meerten New High portfolio.

Technical Factors:

• 100% Barchart short term technical sell signal
• Trend Spotter sell signal
• Below its 20, 50 and 100 day moving averages
• 22.43% off its recent high

Employers Holdings -- added

In the long run I always like well run insurance companies when the market is booming.  Insurance companies have a simple business plan: underwrite properly and make a profit on the float of money between the time you collect premiums and pay out benefits.  When all the stars are aligned you can make a good investment in these stocks and I think now is that time.

That's not the only reason I added Employer's Holdings (EIG) to the Barchart Van Meerten New High portfolio.

EMPLOYERS HOLDING (EIG) is a group of companies providing workers compensation insurance and services to select, small American businesses. They understand the workers compensation insurance needs of independent, entrepreneurial businesspeople because they focus on only one type of customer small businesses. They understand the small business based risks of workplace injury and accident, and they work hard to help protect each insured business's bottom line.

Technical Factors:

• 96% Barchart technical buy signal
• Trend Spotter (tm) buy signal
• 14 new highs and up 17.42% in the last month
• Relative Strength Index is 78.92% and rising
• Trades around 20.37 with a 50 day moving average of 17.85

Fundamental Factors:

• Wall Street brokerage analysts have 3 buy and 4 hold recommendations published
• Revenue is expected to increase by 25.20% this year and 5.30% next year
• Earnings are estimated to increase by 6.50% this year, 11.40% next year and 8.33% annually for the next 5 years
• Last November the company announced a $100 million stock buy back program and that always adds value without tax consequences

Investor Sentiment:

• CAPS members on Motley Fool vote 88 to 4 that the stock will beat the market
• All Stars agree with a vote of 32 to 0
• Fool notes that articles about the company have all been positive

I really think now is the time to buy well run insurance stocks but if you don't at least add this one to your watch lists.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on Barchart.com  in his daily blog -- Barchart Portfolio Blogs.

Through Marketocracy Capital Management  you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High model portfolio.