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The Best (and Worst) Scoring Small Caps

By Todd Campbell
Date: Thursday, January 30, 2014 8:32 PM EST
Views: 186


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

 

 

         
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.