13 Profitable Small Caps With Improving Trend Indicators

by: Trade Radar Operator

This is the latest list from our Premium Stock Screener; this time we are focusing on small-caps.

With the market showing signs of bottoming, there's a good chance the "Risk On" trade might return and favor the beaten down small-cap sector.

The following stocks are all profitable, have low price-to-sales ratios and have market caps ranging from $300M to $2B. In addition, these stocks have shown a bullish turn in their DMI and MACD over the last few days.

Symbol Name Last Price Sector Industry
ATNI Atlantic Tele-Network, Inc. $37.37 Public Utilities Telecommunications Equipment
CMTL Comtech Telecommunications Corp. $26.28 Technology Radio And Television Broadcasting And Communications Equipment
CORE Core-Mark Holding Company, Inc. $34.82 Consumer Non-Durables Food Distributors
COT Cott Corporation $8.30 Consumer Non-Durables Beverages (Production/Distribution)
CSR China Security & Surveillance Technology Inc. $4.87 Consumer Durables Telecommunications Equipment
GLT Glatfelter $15.08 Basic Industries Paper
ISLE Isle of Capri Casinos, Inc. $8.72 Consumer Services Hotels/Resorts
KNL Knoll, Inc. $19.07 Consumer Durables Office Equipment/Supplies/Services
MW Men's Wearhouse, Inc. (The) $33.37 Consumer Services Clothing/Shoe/Accessory Stores
PMC Pharmerica Corporation $13.36 Health Care Medical/Nursing Services
SA Seabridge Gold, Inc. $27.32 Basic Industries Precious Metals
SCS Steelcase Inc. $10.58 Consumer Durables Office Equipment/Supplies/Services
SYA Symetra Financial Corporation $13.54 Finance Life Insurance
SYKE Sykes Enterprises, Incorporated $20.60 Technology EDP Services
Click to enlarge

Some of these stocks are already in solid up-trends (CORE, GLT, MW) but most of them appear to be in a turnaround mode where they are making an attempt at a bullish reversal.

Is it possible to accomplish the reversal? Except for Seabridge Gold, all these stocks can be considered to be what I refer to as "reasonable value" stocks based on price-to-sales ratios. So yes, based on that aspect of valuation, there is no reason why they shouldn't move higher and fulfill the reversal expectation.

Digging deeper, however, you will see that some of these stocks look pretty expensive based on PE (ISLE, SA SCS, SYKE). Others have registered disappointing earnings recently (CMTL, CSR, SA, SYA). That still leaves us with several stocks with solid fundamentals and intriguing technicals. I would in particular point you to Glatfelter and Men's Warehouse. Pharmerica Corp. and Sykes also look interesting based on sequential quarter-over-quarter growth rather than year-over-year growth.

Regardless of the fundamentals, the market seems to be showing these 13 stocks some favor. You might want to keep an eye on them yourself.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.