Monday, 18. December 2017  
15.11.2016 21:38
Author: Nic Wright

STOCK SCREEN: U.S. Small Cap Stocks With Solid Upside To Intrinsic Value

 

Speculation, that President-elect Donald Trump’s homeward-looking policies will favor U.S. domestic corporations, has helped small-cap shares to perform well since the Election Day. The S&P Small Cap 600 Index has climbed 8.8% since the close of trading on Nov. 8 and the Russell 2000 index is up 8.3% over the same period. Both have hit new all-time highs since the election. To compare, the S&P 500 is up 1.4% since Trump was elected.

 

A more pro-growth policy, by lowering taxes and regulation, could steepen the yield curve further, which might be supportive for financials and cyclical stocks in general. As small U.S. companies tend to have higher revenue exposure to the U.S. they are expected to both benefit more from any improvement in domestic economic conditions while simultaneously avoiding any turbulence in the global economy.

 

In looking for ideas this week, we screen for U.S. Small Cap Stocks with solid upside to our AVM’s intrinsic value estimate.

 

Here are the filter criteria we used:

 

1. Market Capitalization between 0.5bn and 10bn.

2. Above 20 percent Upside based on our AVM’s Mean Multiple Value approach.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

 

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

INDUSTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

 51JOB INC-ADR

 Internet

32,81

1934

211,5

180,6

300,9

 ADTRAN INC

 Telecommunications

19,80

958

48,8

10,0

-69,0

 ALLIANCE HOLDINGS GP LP

 Coal

28,90

1730

23,1

24,6

42,5

 AVIS BUDGET GROUP INC

 Commercial Services

39,02

3429

135,4

78,7

121,2

 BED BATH & BEYOND INC

 Retail

45,84

6972

64,2

129,1

141,9

 ENSIGN GROUP INC/THE

 Healthcare Services

21,73

1101

31,3

49,0

11,5

 FOSSIL GROUP INC

 Distribution & Wholesale

33,72

1623

128,3

171,1

184,1

 FRANCESCAS HOLDINGS CORP

 Retail

17,43

661

124,8

54,7

51,7

 HIBBETT SPORTS INC

 Retail

45,80

1007

25,8

24,3

44,8

 RPX CORP

 Commercial Services

10,56

519

214,3

138,3

151,5

 STAPLES INC

 Retail

8,89

5782

46,7

33,2

-65,8

 STRAYER EDUCATION INC

 Commercial Services

68,23

757

176,2

80,6

13,0

 TERADATA CORP

 Computers

29,04

3772

86,2

31,1

32,8

 UNITED THERAPEUTICS CORP

 Biotechnology

134,35

5699

90,3

11,3

94,4

 URBAN OUTFITTERS INC

 Retail

39,25

4601

26,3

18,2

-5,1