E Best And Worst Small Caps



Railroads are the best scoring small cap industry (GBX, ARII), operator volume and carload pricing continue to support operator profit growth.  UNP & KSU's revenue per carload grew 5% and 5.7% YoY in Q4, respectively. Business services (EXAM, CGX, ARC) also score highly.  Scientific & technical instruments (FLDM, ALOG, PRCP) benefit as global R&D spend increases.  General building materials (HW, NCS) offer growth on construction spending opportunity.

No small cap basics groups score above average.  Where possible go to large cap.  In consumer goods, only small cap textiles (DXYN) are strong scoring.  In financials, buy investment brokers (CLMS), P&C insurers (STFC), and regional banks (TBBK).  In healthcare, the top groups are medical appliances (CYBX, BABY, CYNO, CSII), medical instruments (VASC, HTWR, OSUR), and biotech (SGMO, NLNK, ANIK, CORT, KERX, ANAC). The best baskets in industrial goods are general building materials, and aerospace/defense (ORB).  In services, focus on rails, business services, and restaurants (DAVE, RRGB).  In technology, concentrate on scientific & technical instruments, semi ICs (TQNT, DIOD, PLXT), diversified electronics (IVAC, MEI), and specialized semiconductor (MPWR).

 

View single page >> |

None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.