10 Small-Cap Earnings Surprise Stocks

by: Scott's Investments

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 while the Mid-May to Mid-June returned .14% versus -1.93% on SPY and -4.48% on VBR, a small-cap value ETF. 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. 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. 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
NSIT Insight Enterprises, Inc. Here 98.99 684.15 Computer Hardware
GIII G-III Apparel Group, Ltd. Here 98.79 510.52 Apparel/Accessories
MDF Metropolitan Health Networks, Here 98.73 161.65 Healthcare Facilities
SCLN SciClone Pharmaceuticals, Inc Here 98.59 165.23 Biotechnology & Drugs
CNU Continucare Corporation Here 98.03 248.12 Healthcare Facilities
CELL Brightpoint, Inc. Here 97.12 572.01 Communications Equipment
HITK Hi-Tech Pharmacal Co. Here 96.73 298.54 Biotechnology & Drugs
UTI Universal Technical Institute Here 95.64 587.72 Schools
STKL SunOpta, Inc. (USA) Here 95.21 335.74 Food Processing
RELL Richardson Electronics, Ltd. Here 93.73 161.06 Electronic Instr. & Controls

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Tagged: Earnings
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