At the end of the first quarter, I suggested that some of the strong performers year-to-date might have further upside.
Specifically, using Stockval, I had identified 25 stocks (excluding one that had a cash acquisition offer) that were not widely followed and had good growth prospects.
Thus far in Q2, with the most comparable index, the Russell 2000, up 3.71%, the list has returned an average of 6.25%:
After creating that screen, I put some more thought into what I was trying to accomplish and modified it somewhat, creating what I call the “Small-Cap Rocket Report”, which I publish monthly. The parameters are included below, along with the list that generates as of the close on 5/11. The names have been fairly stable.
I have spent some time getting to know these stocks, several of which are definitely worth getting to know better. What I find most interesting is that this list of high-growth companies has a median PE of just 20.3.
A few that look quite interesting to me include AZPN, EPAX and MIDD. Several are overdone in the short-run but might be worth a look upon consolidation: DNEX, PCR, WHQ.
Disclosure: No position in any stock mentioned except ANSS