Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you prefer investing with a stock's momentum trends? For ideas on how to start your own momentum search, we ran a screen.

We began by screening the small-cap sector, with market caps between $300 million and $1 billion, for those trading within 5% of their 52-week highs, indicating strong upward momentum.

We then screened these names for those with strong sales trends, comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered a good sign.

To screen for healthy liquidity, we also only focused on those companies with inventory declining as a percent of current assets.

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will break through to new highs? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. Flotek Industries Inc. (NYSE:FTK): Provides oilfield services and equipment to the energy and mining industries in the U. Market cap at $710.76M, most recent closing price at $13.79. The stock is trading 1.69% below its 52-week high. Revenue grew by 57.82% during the most recent quarter ($74.9M vs. $47.46M y/y). Inventory grew by 36.1% during the same time period ($37.89M vs. $27.84M y/y). Inventory, as a percentage of current assets, decreased from 34.9% to 28.69% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

2. American Vanguard Corp. (NYSE:AVD): Engages in the manufacture, development, and marketing of specialty chemical products for agricultural and commercial uses in the United States and internationally. Market cap at $676.45M, most recent closing price at $24.38. The stock is trading 0.89% below its 52-week high. Revenue grew by 35.68% during the most recent quarter ($84.68M vs. $62.41M y/y). Inventory grew by -4.02% during the same time period ($71.07M vs. $74.05M y/y). Inventory, as a percentage of current assets, decreased from 62.43% to 39.82% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

3. Susser Holdings Corporation (NYSE:SUSS): Operates convenience stores and distributes motor fuels in Texas, New Mexico, Oklahoma, and Louisiana. Market cap at $577.8M, most recent closing price at $27.56. The stock is trading 3.42% below its 52-week high. Revenue grew by 28.54% during the most recent quarter ($1,295.13M vs. $1,007.55M y/y). Inventory grew by 17.33% during the same time period ($98.72M vs. $84.14M y/y). Inventory, as a percentage of current assets, decreased from 40.07% to 31.42% during the most recent quarter (comparing 13 weeks ending 2012-01-01 to 13 weeks ending 2011-01-02).

4. AZZ Incorporated (NYSE:AZZ): Manufactures electrical equipment and components for power generation, transmission and distribution, and industrial markets primarily in the United States and Canada. Market cap at $648.25M, most recent closing price at $50.91. The stock is trading 4.08% below its 52-week high. Revenue grew by 22.78% during the most recent quarter ($123.63M vs. $100.69M y/y). Inventory grew by 1.23% during the same time period ($60.28M vs. $59.55M y/y). Inventory, as a percentage of current assets, decreased from 20.97% to 19.91% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).

5. Universal Forest Products Inc. (NASDAQ:UFPI): Distributes, and installs lumber, composite wood, plastic, and other building products for the DIY/retail, site-built construction, manufactured housing, and industrial markets. Market cap at $732.23M, most recent closing price at $37.14. The stock is trading 3.55% below its 52-week high. Revenue grew by 18.05% during the most recent quarter ($457.11M vs. $387.23M y/y). Inventory grew by -10.3% during the same time period ($218.55M vs. $243.64M y/y). Inventory, as a percentage of current assets, decreased from 53.43% to 50.27% during the most recent quarter (comparing 13 weeks ending 2012-03-31 to 13 weeks ending 2011-03-26).

6. Abaxis Inc. (NASDAQ:ABAX): Develops, manufactures, markets, and sells portable blood analysis systems for use in the human or veterinary patient-care setting to provide clinicians with rapid blood constituent measurements in the medical and veterinarian markets. Market cap at $766.74M, most recent closing price at $35.20. The stock is trading 4.33% below its 52-week high. Revenue grew by 13.8% during the most recent quarter ($42.72M vs. $37.54M y/y). Inventory grew by -1.06% during the same time period ($19.6M vs. $19.81M y/y). Inventory, as a percentage of current assets, decreased from 15.97% to 15.38% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

7. Zygo Corporation (NASDAQ:ZIGO): Designs, develops, and manufactures ultra-high precision measurement solutions to enhance its customers' manufacturing yields; and optical sub-systems and components for original equipment manufacturers and end-user applications in the United States and internationally. Market cap at $363.45M, most recent closing price at $19.91. The stock is trading 1.96% below its 52-week high. Revenue grew by 10.94% during the most recent quarter ($40.04M vs. $36.09M y/y). Inventory grew by -9.55% during the same time period ($24.62M vs. $27.22M y/y). Inventory, as a percentage of current assets, decreased from 26.18% to 17.98% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

8. LeapFrog Enterprises Inc. (NYSE:LF): Provides technology-based learning platforms worldwide. Market cap at $622.68M, most recent closing price at $9.11. The stock is trading 3.93% below its 52-week high. Revenue grew by 10.76% during the most recent quarter ($210.21M vs. $189.79M y/y). Inventory grew by -27.73% during the same time period ($34.29M vs. $47.45M y/y). Inventory, as a percentage of current assets, decreased from 20.23% to 12.58% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

9. Standex International Corp. (NYSE:SXI): Operates as a diversified manufacturing company in the United States and internationally. Market cap at $552.48M, most recent closing price at $43.50. The stock is trading 4.17% below its 52-week high. Revenue grew by 9% during the most recent quarter ($154.87M vs. $142.08M y/y). Inventory grew by -1.03% during the same time period ($78.19M vs. $79M y/y). Inventory, as a percentage of current assets, decreased from 37.55% to 32.76% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

10. BioScrip Inc. (NASDAQ:BIOS): Provides pharmacy and home health services in the United States. Market cap at $417M, most recent closing price at $7.60. The stock is trading 2.10% below its 52-week high. Revenue grew by 7.31% during the most recent quarter ($483.3M vs. $450.37M y/y). Inventory grew by -14.69% during the same time period ($56.74M vs. $66.51M y/y). Inventory, as a percentage of current assets, decreased from 24.02% to 19.4% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

11. ICU Medical, Inc. (NASDAQ:ICUI): Engages in the development, manufacture, and sale of disposable medical connection systems for use in vascular therapy applications in the United States and internationally. Market cap at $739.1M, most recent closing price at $52.01. The stock is trading 1.76% below its 52-week high. Revenue grew by 5.65% during the most recent quarter ($75.51M vs. $71.47M y/y). Inventory grew by -27.17% during the same time period ($37.29M vs. $51.2M y/y). Inventory, as a percentage of current assets, decreased from 22.96% to 13.51% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 11 Small Caps Trading Near Highs With Strong Inventory Trends