The Best (and Worst) Scoring Small Caps
The best scoring small caps from one year ago (1/31/2013) have outperformed the R2K by 1415 bps over the past year, with no turnover. The best performers have been RAD up 241%, MDSO up 158%, PRCP up 115%, HOMB up 95%, and CGNX up 89%.
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.
- Industrial goods is the top scoring small cap sector.
- The best small cap industry is railroads
The average small cap score is 58.96 this week, below the four week moving average score of 60.11. The average small cap is trading -19.6% below its 52 week high, 5.71% above its 200 dma, and has 7.06 days to cover held short.
The best scoring small cap sector is industrial goods. Healthcare and financials also score above average. Utilities and services score in line. Consumer, technology, and basic materials score below average.
SMALL CAP | 1/30/2014 | 4 Week MA | |||
Company Name | Symbol | Sector | INDUSTRY | SCORE | SCORE |
BEST | |||||
Hanger Orthopedic | HGR | HEALTHCARE | SPECIALIZED HEALTH SERVICES | 105 | 103.75 |
Agilysys Inc | AGYS | SERVICES | ELECTRONICS WHOLESALE | 100 | 101.25 |
Anacor Pharma | ANAC | HEALTHCARE | BIOTECHNOLOGY | 100 | 98.75 |
Infospace/Blucora | BCOR | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 100 | 97.5 |
Builders FirstSource | BLDR | SERVICES | HOME IMPROVEMENT STORES | 100 | 100 |
Chemed Inc | CHE | HEALTHCARE | HOME HEALTH CARE | 100 | 92.5 |
Cali. Water Svcs. | CWT | UTILITIES | WATER UTILITIES | 100 | 91.25 |
Greenbrier Companies Inc | GBX | SERVICES | RAILROADS | 100 | 100 |
MarineMax, Inc. | HZO | SERVICES | SPECIALTY RETAIL, OTHER | 100 | 98.75 |
Saba Software | SABA | TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 100 | 100 |
Sun Hydraulics Inc | SNHY | INDUSTRIAL GOODS | INDUSTRIAL EQUIPMENT & COMPONENTS | 100 | 97.5 |
Encore Wire | WIRE | BASIC MATERIALS | COPPER | 100 | 98.75 |
Affymetrix Inc | AFFX | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 95 | 97.5 |
Career Education Corp | CECO | SERVICES | EDUCATION & TRAINING SERV | 95 | 92.5 |
Century Aluminum | CENX | BASIC MATERIALS | ALUMINUM | 95 | 97.5 |
Dixie Group | DXYN | CONSUMER GOODS | TEXTILES | 95 | 95 |
I T T Educational | ESI | SERVICES | EDUCATION & TRAINING SERV | 95 | 95 |
FormFactor Inc. | FORM | TECHNOLOGY | SEMICONDUCTOR-BROAD LINE | 95 | 75 |
Intevac Inc | IVAC | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 95 | 93.75 |
Keryx Bio | KERX | HEALTHCARE | BIOTECHNOLOGY | 95 | 93.75 |
LCA Vision | LCAV | HEALTHCARE | MEDICAL PRACTITIONERS | 95 | 93.75 |
Matthews Intl Corp Cl A | MATW | INDUSTRIAL GOODS | METAL FABRICATION | 95 | 81.25 |
Perceptron Inc | PRCP | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 95 | 95 |
Silicom LTD | SILC | TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 95 | 95 |
State Auto Financial Corp | STFC | FINANCIALS | PROPERTY & CASUALITY INSURANCE | 95 | 95 |
Triquint Semi | TQNT | TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 95 | 93.75 |
Abaxis Inc. | ABAX | HEALTHCARE | DIAGNOSTIC SUBSTANCES | 90 | 78.75 |
Astec Industries Inc | ASTE | INDUSTRIAL GOODS | FARM & CONSTRUCTION MACHINERY | 90 | 75 |
C D I Corp | CDI | SERVICES | STAFFING & OUTSOURCING SERVICES | 90 | 91.25 |
Consolidated Graphics Inc | CGX | SERVICES | BUSINESS SERVICES | 90 | 88.75 |
Dxp Enterprises Inc | DXPE | SERVICES | INDUSTRIAL EQUIPMENT WHOLESALE | 90 | 87.5 |
American Ecology | ECOL | INDUSTRIAL GOODS | WASTE MANAGEMENT | 90 | 88.75 |
Finish Line Inc | FINL | SERVICES | APPAREL STORES | 90 | 91.25 |
Headwaters Inc | HW | INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 90 | 88.75 |
Methode Elect | MEI | TECHNOLOGY | DIVERSIFIED ELECTRONICS | 90 | 88.75 |
Nanometrics Inc | NANO | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 90 | 87.5 |
Newport Corp | NEWP | TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 90 | 87.5 |
Penn Virginia Corp | PVA | BASIC MATERIALS | INDEPENDENT OIL & GAS | 90 | 87.5 |
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WORST | |||||
Harmony Gold Mining | HMY | BASIC MATERIALS | GOLD | 15 | 21.25 |
Rediff.com | REDF | TECHNOLOGY | INTERNET INFORMATION PROVIDER | 15 | 21.25 |
Sigma Designs | SIGM | TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 15 | 20 |
Affymax | AFFY | HEALTHCARE | BIOTECHNOLOGY | 20 | 20 |
Alvarion LTD | ALVR | TECHNOLOGY | WIRELESS COMMUNICATIONS | 20 | 23.75 |
Coeur D Alene | CDE | BASIC MATERIALS | SILVER | 20 | 20 |
Chiquita Brands | CQB | CONSUMER GOODS | FARM PRODUCTS | 20 | 26.25 |
S T R Holdings | STRI | TECHNOLOGY | SEMICONDUCTOR- SPECIALIZED | 20 | 18.75 |
UT Starcom | UTSI | TECHNOLOGY | WIRELESS COMMUNICATIONS | 20 | 20 |
Small cap short interest has fallen 0.99 days since November and is 1.51 days lower than this time last year. Since November, the largest covering has occurred in small cap financials. Since last year, the biggest covering has occurred in both financials and healthcare.
The best scoring small cap industry is railroads (GBX, ARII). Diversified electronics (IVAC, MEI) score strongly. Staffing (CDI, BBSI) offers upside exiting the peak demand season. Historically, staffing demand drops in January before building again into the end of the quarter. Scientific & technical instruments (PRCP, AFFX, NEWP, NANO) offer upside. Management services (NCI, HSII) rounds out our best industries list this week.
In small cap basics, only steel & iron (ZEUS, NWPX) score above average. Large cap offers more opportunities. Across consumer goods, buy processed & packaged goods (DMND, KTEC) and textiles (DXYN). The best scoring financials industries include regional banks (MBWM, TBBK), investment brokers (CLMS), and P&C insurers (STFC, GLRE). In healthcare, buy medical appliances (OFIX, IVC, EXAC), biotech (BCRX, ONVO, INSY, EXEL), and specialty health services (HGR). The top industrials groups are aerospace/defense (ORB) and general building materials (HW). In services, focus on rails, staffing, and management services. The best scoring technology groups are diversified electronics, scientific & technical instruments, and business software (PRFT, NTCT, CSGS).
SMALL CAP INDUSTRY SCORE | 1/30/2014 | |
Sector | INDUSTRY | Score |
BASIC MATERIALS | STEEL & IRON | 60.00 |
BASIC MATERIALS | INDUSTRIAL METALS & MINERALS | 58.00 |
BASIC MATERIALS | INDEPENDENT OIL & GAS | 51.00 |
BASIC MATERIALS | GOLD | 45.00 |
BASIC MATERIALS | OIL & GAS DRILLING & EXPLORATION | 38.33 |
CONSUMER GOODS | PROCESSED & PACKAGED GOODS | 67.50 |
CONSUMER GOODS | TEXTILES | 63.00 |
CONSUMER GOODS | HOME FURNISHING & FIXTURES | 55.00 |
CONSUMER GOODS | AUTO PARTS | 54.00 |
FINANCIALS | REGIONAL BANKS | 68.57 |
FINANCIALS | INVESTMENT BROKERAGE | 67.50 |
FINANCIALS | PROPERTY & CASUALITY INSURANCE | 64.00 |
FINANCIALS | SAVINGS & LOANS | 63.89 |
FINANCIALS | CREDIT SERVICES | 40.00 |
HEALTHCARE | MEDICAL APPLIANCES & EQUIPMENT | 67.86 |
HEALTHCARE | BIOTECHNOLOGY | 67.71 |
HEALTHCARE | SPECIALIZED HEALTH SERVICES | 63.33 |
HEALTHCARE | HOME HEALTH CARE | 60.00 |
HEALTHCARE | DRUG RELATED PRODUCTS | 53.33 |
HEALTHCARE | MEDICAL INSTRUMENTS & SUPPLIES | 53.33 |
HEALTHCARE | DRUG MANUFACTURERS | 49.00 |
INDUSTRIAL GOODS | AEROSPACE/DEFENSE PRODUCTS & SERVICES | 64.00 |
INDUSTRIAL GOODS | GENERAL BUILDING MATERIALS | 62.50 |
INDUSTRIAL GOODS | HEAVY CONSTRUCTION | 58.75 |
INDUSTRIAL GOODS | INDUSTRIAL ELECTRICAL EQUIPMENT | 48.33 |
SERVICES | RAILROADS | 81.67 |
SERVICES | STAFFING & OUTSOURCING SERVICES | 73.75 |
SERVICES | MANAGEMENT SERVICES | 68.75 |
SERVICES | RESTAURANTS | 62.50 |
SERVICES | BUSINESS SERVICES | 61.25 |
SERVICES | MARKETING SERVICES | 61.25 |
SERVICES | EDUCATION & TRAINING SERV | 60.00 |
SERVICES | SPECIALTY RETAIL, OTHER | 59.29 |
SERVICES | TRUCKING | 58.33 |
SERVICES | APPAREL STORES | 55.38 |
SERVICES | BROADCASTING | 51.00 |
SERVICES | RESORTS AND CASINOS | 48.75 |
SERVICES | CATALOG & MAIL ORDER HOUSES | 43.33 |
TECHNOLOGY | DIVERSIFIED ELECTRONICS | 75.00 |
TECHNOLOGY | SCIENTIFIC & TECHNICAL INSTRUMENTS | 72.50 |
TECHNOLOGY | BUSINESS SOFTWARE & SERVICES | 67.50 |
TECHNOLOGY | INFORMATION TECHNOLOGY SERVICES | 65.00 |
TECHNOLOGY | COMPUTER PERIPHERALS | 61.67 |
TECHNOLOGY | INTERNET INFORMATION PROVIDER | 58.33 |
TECHNOLOGY | SEMICONDUCTOR- INTEGRATED CIRCUITS | 57.86 |
TECHNOLOGY | SEMICONDUCTOR-SPECIALIZED | 56.67 |
TECHNOLOGY | APPLICATION SOFTWARE | 55.00 |
TECHNOLOGY | NETWORKING & COMMUNICATION DEVICES | 55.00 |
TECHNOLOGY | INTERNET SOFTWARE & SERVICES | 51.88 |
TECHNOLOGY | COMMUNICATION EQUIPMENT | 51.67 |
TECHNOLOGY | SEMICONDUCTOR EQUIPMENT & MATERIALS | 48.75 |
TECHNOLOGY | PRINTED CIRCUIT BOARDS | 47.50 |
TECHNOLOGY | WIRELESS COMMUNICATIONS | 33.75 |
TECHNOLOGY | INTERNET SERVICE PROVIDERS | 25.00 |
None.