Below is a list of 10 small cap value earnings surprise stocks for the next 30 days. Last month's portfolio can be seen here. The Mid-April to Mid-May portfolio returned -6.64% versus -5.77% for SPY and -3.77% for VBR, a small-cap value ETF, while the Mid-May to Mid-June returned .14% versus -1.93% on SPY and -4.48% on VBR. Mid-June to Mid-July was a disappointing period - the list returned an average of -6.40% versus -3.97% for VBR and -1.56% for SPY. Returns exclude dividends, slippage, and commission.
My screen looks for a low PEG, recent earnings surprises, a minimum volume requirement, and small market capitalization. I exclude OTC stocks and I further narrow the list based on additional fundamental factors to 10 stocks or less. The list, as always, is not a specific portfolio but a recommendation for further research. Since this is a purely mechanical screen, I play no discretion in the results (other than establishing the original screen criteria). A couple of months ago I added a 200 day simple moving average requirement - stocks must be trading above their 200 day moving average in order to make the list. I use stockscreen123 as the screener.
The stocks on this list can be especially volatile given their low market capitalization, so please do proper due diligence. I find the list useful for gathering potential investment or trade ideas rather than a blanket "buy" list. Another option is to abandon this type of screen entirely when the underlying index is trading below its long-term moving average (such as the 200 day). As of 7/15/10, the Russell 2000 was trading just below the 200 day moving average. The current lists of stocks are below and returns can be tracked real--time on the right hand side of Scott's Investments:
| Ticker | Name | Trend Analysis | Rank | MktCap | Industry |
| FINL | The Finish Line, Inc. | Here | 99.49 | 797 | Retail (Apparel) |
| GIII | G-III Apparel Group, Ltd. | Here | 99 | 448.07 | Apparel/Accessories |
| NSIT | Insight Enterprises, Inc. | Here | 98.87 | 642.54 | Computer Hardware |
| MDF | Metropolitan Health Networks, | Here | 98.58 | 152.07 | Healthcare Facilities |
| SCLN | SciClone Pharmaceuticals, Inc | Here | 98.18 | 165.23 | Biotechnology & Drugs |
| MEAS | Measurement Specialties, Inc. | Here | 96.92 | 225.57 | Scientific & Technical Instr. |
| UTI | Universal Technical Institute | Here | 95.97 | 558.06 | Schools |
| STKL | SunOpta, Inc. (USA) | Here | 95.46 | 303.86 | Food Processing |
| NC | NACCO Industries, Inc. | Here | 93.27 | 754.09 | Misc. Capital Goods |
| RELL | Richardson Electronics, Ltd. | Here | 93.12 | 166.36 | Electronic Instr. & Controls |
Disclosure: No positions
Source: 10 Small Cap Earnings Growers
