Small Cap Report: Best And Worst
Methodology
Our weekly best and worst reports show you stocks with the best potential returns over the coming 6 to 12 months. The score is calculated by fusing together the key drivers of price movement including, earnings beats, earnings growth, at-the-market insider buys, institutional activity, short ratio analysis, price to earnings analysis and calendar quarter seasonality. Those stocks appearing in our best list should be bought while those appearing in our worst list should be sold.
The highest scoring names in small cap from 1 year ago (4/18/2013) returned 580 bps more than the Russell 2000. The best performers have been HOMB up 72%, CIR up 68%, MINI up 63%, DXPE up 62%, GB up 58%, and UHAL up 54%.
- The best small cap sector is utilities.
- The best small cap industry is trucking.
The average small cap score is 45.55, below the four week moving average score of 48.75. The average small cap is trading -25.65% below its 52 week high, -2.45% below its 200 dma, and has 6.71 days to cover short.
The best small cap sector is utilities. Industrial goods, consumer goods, basics, and services score above average. Technology, financials, and healthcare score below average.
| SMALL CAP | 4/17/2014 | 4 Week MA | |||
| Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
| BEST | |||||
| Dxp Enterprises Inc | DXPE | SERVICES | INDUSTRIAL EQUIPMENT WHOLESALE | 105 | 80 |
| ExamWorks | EXAM | SERVICES | BUSINESS SERVICES | 100 | 91.25 |
| Greatbatch Inc. | GB | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 100 | 85 |
| Arthrocare Corp. | ARTC | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 95 | 83.75 |
| Boulder Brands | BDBD | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 95 | 87.5 |
| American Ecology | ECOL | INDUSTRIAL GOODS | WASTE MANAGEMENT | 95 | 81.25 |
| Smith & Wesson Hldg. | SWHC | CONSUMER GOODS | SPORTING GOODS | 95 | 88.75 |
| Amsurg | AMSG | HEALTHCARE | HOSPITALS | 90 | 75 |
| Medifast | MED | SERVICES | SPECIALTY RETAIL, OTHER | 90 | 76.25 |
| Vascular Solutions | VASC | HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 90 | 90 |
| Alimera Sciences | ALIM | HEALTHCARE | DRUG MANUFACTURERS | 85 | 81.25 |
| Anaren Inc. | ANEN | TECHNOLOGY | WIRELESS COMMUNICATIONS | 85 | 72.5 |
| Cavco Industries | CVCO | INDUSTRIAL GOODS | MANUFACTURED HOUSING | 85 | 76.25 |
| Diodes Inc | DIOD | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 85 | 87.5 |
| EPL Oil & Gas | EPL | BASIC MATERIALS | INDEPENDENT OIL & GAS | 85 | 78.75 |
| American Healthways | HWAY | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 85 | 75 |
| PharMerica | PMC | SERVICES | DRUG STORES | 85 | 77.5 |
| Silicon Motion Tech ADS | SIMO | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 85 | 73.75 |
| Albany Molecular | AMRI | HEALTHCARE | BIOTECHNOLOGY | 80 | 75 |
| BioSpecifics | BSTC | HEALTHCARE | BIOTECHNOLOGY | 80 | 77.5 |
| Diamond Foods, Inc. | DMND | CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 80 | 76.25 |
| Greenbrier Companies Inc | GBX | SERVICES | RAILROADS | 80 | 76.25 |
| Jakks Pacific Inc. | JAKK | CONSUMER GOODS | TOYS & GAMES | 80 | 73.75 |
| Kongzhong | KONG | SERVICES | BUSINESS SERVICES | 80 | 72.5 |
| Monolithic Power Sys | MPWR | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 80 | 77.5 |
| Marten Transport | MRTN | SERVICES | TRUCKING | 80 | 72.5 |
| Meritor | MTOR | CONSUMER GOODS | AUTO PARTS | 80 | 73.75 |
| Overseas Shilpholding Group Inc | OSG | SERVICES | SHIPPING | 80 | 65 |
| S C S Transport | SAIA | SERVICES | TRUCKING | 80 | 75 |
| W & T Offshore | WTI | BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 80 | 55 |
| WORST | |||||
| CytRX | CYTR | HEALTHCARE | BIOTECHNOLOGY | 10 | 20 |
| Durect Corp | DRRX | HEALTHCARE | DRUG MANUFACTURERS | 10 | 17.5 |
| Entravision Communications Corp | EVC | SERVICES | BROADCASTING | 10 | 28.75 |
| Novavax | NVAX | HEALTHCARE | BIOTECHNOLOGY | 10 | 20 |
| Progenics Pharmaceuticals Inc | PGNX | HEALTHCARE | BIOTECHNOLOGY | 10 | 16.25 |
| Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 10 | 16.25 |
| Almost Family | AFAM | HEALTHCARE | HOME HEALTH CARE | 15 | 21.25 |
| Alvarion LTD | ALVR | TECHNOLOGY | WIRELESS COMMUNICATIONS | 15 | 20 |
| Cross Country Healthcare | CCRN | SERVICES | STAFFING & OUTSOURCING SERVICES | 15 | 21.25 |
| Mother's Work | DEST | SERVICES | APPAREL STORES | 15 | 26.25 |
| Dynavex Tech | DVAX | HEALTHCARE | DRUG MANUFACTURERS | 15 | 33.75 |
| Five Star Quality | FVE | HEALTHCARE | LONG-TERM CARE FACILITIES | 15 | 18.75 |
| Gentiva Health Services Inc | GTIV | HEALTHCARE | HOME HEALTH CARE | 15 | 26.25 |
| Internap Network Services Corp | INAP | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 15 | 23.75 |
| Medical Action | MDCI | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 15 | 25 |
| Mannatech | MTEX | HEALTHCARE | DRUG RELATED PRODUCTS | 15 | 22.5 |
| New York & Company | NWY | SERVICES | APPAREL STORES | 15 | 26.25 |
| Orexigen | OREX | HEALTHCARE | DRUG MANUFACTURERS | 15 | 23.75 |
| Pennsylvania R E I T | PEI | FINANCIALS | REITS | 15 | 30 |
| Sigma Designs | SIGM | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 15 | 17.5 |
| Sarepta Thera | SRPT | HEALTHCARE | BIOTECHNOLOGY | 15 | 21.25 |
| S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 15 | 18.75 |
| Stereotaxis Inc | STXS | HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 15 | 25 |
| Verastem Inc | VSTM | HEALTHCARE | BIOTECHNOLOGY | 15 | 17.5 |
The best scoring small cap industry is trucking (SAIA, MRTN). Processed & packaged goods (BDBD, DMND) are high scoring and benefit from post recession cost cutting, packaging innovation and cross-branding. Business services (EXAM, KONG, CGX) are strong. Semi ICs (DIOD) remain high scoring; however, semi's typically peak in the second quarter. Heavy construction (AEGN) benefits from rising construction spending.
In small cap basics, buy independent oil & gas (CRK, PQ), and oil & gas drillers (WTI). In consumer, focus on processed & packaged goods, auto parts (MTOR), and textiles (DXYN, BEBE). The top financials groups are P&C insurers (UFCS, STFC), investment brokers (CLMS), and regional banks (SNBC, MBWM). In healthcare, only medical appliances (GB, CYBX, BABY) score above average. In industrials, concentrate on heavy construction, building materials (ACO), and aerospace/defense (AVAV). The best services industries are trucking, business services, railroads (GBX), and catalogs (GAIA). In technology, buy semi ICs, networking (SILC), and diversified electronics (SIMO).
| SMALL CAP INDUSTRY SCORE | 4/17/2014 | |
| Sector | INDUSTRY | Score |
| BASIC MATERIALS | INDEPENDENT OIL & GAS | 60.00 |
| BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 55.00 |
| BASIC MATERIALS | STEEL & IRON | 45.00 |
| BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 42.00 |
| BASIC MATERIALS | GOLD | 40.00 |
| CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 67.50 |
| CONSUMER GOODS | AUTO PARTS | 57.00 |
| CONSUMER GOODS | TEXTILES | 46.67 |
| CONSUMER GOODS | HOME FURNISHING & FIXTURES | 26.67 |
| FINANCIALS | PROPERTY & CASUALITY INSURANCE | 50.00 |
| FINANCIALS | INVESTMENT BROKERAGE | 47.50 |
| FINANCIALS | REGIONAL BANKS | 47.14 |
| FINANCIALS | SAVINGS & LOANS | 43.89 |
| FINANCIALS | CREDIT SERVICES | 32.50 |
| HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 49.67 |
| HEALTHCARE | DRUG RELATED PRODUCTS | 46.25 |
| HEALTHCARE | SPECIALIZED HEALTH SERVICES | 45.00 |
| HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 44.76 |
| HEALTHCARE | BIOTECHNOLOGY | 39.44 |
| HEALTHCARE | HOME HEALTH CARE | 37.14 |
| HEALTHCARE | DRUG MANUFACTURERS | 37.00 |
| INDUSTRIAL GOODS | HEAVY CONSTRUCTION | 60.00 |
| INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 50.00 |
| INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 47.00 |
| INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 40.00 |
| SERVICES | TRUCKING | 75.00 |
| SERVICES | BUSINESS SERVICES | 63.33 |
| SERVICES | RAILROADS | 55.00 |
| SERVICES | CATALOG & MAIL ORDER HOUSES | 53.33 |
| SERVICES | RESTAURANTS | 53.00 |
| SERVICES | EDUCATION & TRAINING SERV | 50.83 |
| SERVICES | SPECIALTY RETAIL, OTHER | 49.17 |
| SERVICES | RESORTS AND CASINOS | 46.25 |
| SERVICES | STAFFING & OUTSOURCING SERVICES | 39.00 |
| SERVICES | MARKETING SERVICES | 38.33 |
| SERVICES | MANAGEMENT SERVICES | 36.25 |
| SERVICES | APPAREL STORES | 30.83 |
| SERVICES | BROADCASTING | 24.00 |
| TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 60.71 |
| TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 57.50 |
| TECHNOLOGY | DIVERSIFIED ELECTRONICS | 54.00 |
| TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 46.88 |
| TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 45.00 |
| TECHNOLOGY | APPLICATION SOFTWARE | 43.00 |
| TECHNOLOGY | PRINTED CIRCUIT BOARDS | 41.25 |
| TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 41.25 |
| TECHNOLOGY | COMMUNICATION EQUIPMENT | 40.00 |
| TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 40.00 |
| TECHNOLOGY | WIRELESS COMMUNICATIONS | 38.75 |
| TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 37.78 |
| TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 36.00 |
| TECHNOLOGY | INTERNET INFORMATION PROVIDER | 31.25 |
| TECHNOLOGY | COMPUTER PERIPHERALS | 30.00 |
| TECHNOLOGY | INTERNET SERVICE PROVIDERS | 28.33 |
None.
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