- (0:15) – Unearthing Value Stocks Among Small Cap With Growth: Stock Screener
- (6:10) – Top Stock Selections For Your Watchlist by Tracey
- (23:20) – Recap of the Episode: ATRO, AVD, MATV, QUAD, SNCR
Welcome to Episode #362 of the Value Investor Podcast.
Each week, Tracey Ryniec, the architect of Zacks Value Investor portfolio, divulges some of her premier value investing pointers and stock choices.
While large cap growth stocks continue to reach pinnacle levels, the small caps are still in the rear, notably small cap value. Historically, however, small cap value stocks have remained a stalwart performer among equity asset classes.
Could it be time to delve into some prime small cap stocks that are also available at a markdown?
Drafting Small Cap Stocks with Growth and Value
When eyeing small cap value stocks, why not seek a dash of growth alongside? It’s an uncommon union but indeed a potent one.
Zacks boasts a supreme premium screen for this occasion. It sifts through stocks with a market cap under $1 billion that last finished above $5.
The screen targets a growth rate surpassing 20% and for value, it scouts for stocks with a price-to-sales ratio under 1.0. A P/S ratio below 1.0 customarily indicates an undervalued company.
Moreover, a top Zacks Rank of Buy or Strong Buy appended should furnish you with stocks where analysts have been amplifying their earnings forecasts for the current year.
This screen delivered 11 small cap stocks.
Top 5 Small Cap Stocks with Growth and Value
1. Astronics Corp. (ATRO)
Astronics caters to the world’s defense, aerospace, and critical mission industries. It possesses a market cap of $607 million.
Astronics’ stock has surged by 35.8% in the past year, effortlessly outperforming the Russell 2000 small cap index the IWM, which has escalated by 16.6% during the same period. With a P/S ratio of 0.9, Astronics continues to offer a bargain.
Is Astronics a worthy inclusion on your small cap roster?
2. American Vanguard Corp. (AVD)
A diversified specialty and agricultural products company, American Vanguard crafts solutions for crop protection and nutrition, turf and ornamentals management, and commercial and consumer pest control. It carries a market cap of $311 million.
American Vanguard has witnessed a dip of 44.3% in the last year amidst headwinds in the agriculture sector. However, with a P/S ratio of merely 0.6 and a forward P/E of 15.7, American Vanguard remains a cost-effective choice.
Should an agriculture small cap like American Vanguard find a spot on your watchlist?
3. Mativ Holdings, Inc. (MATV)
Based in Alpharetta, GA, Mativ Holdings is a specialty materials firm operating across 3 continents. With a market cap of $979 million, Mativ Holdings stands tall.
Shares of Mativ Holdings have dwindled by 19% over the last year, hitting near 5-year lows and plunging by 53.5% in that span. Sporting a P/S ratio of only 0.4, is this a propitious moment to delve into Mativ Holdings?
4. Quad/Graphics (QUAD)
A global marketing experience enterprise, Quad/Graphics caters to 2700 clients across 14 countries. Possessing a market cap of $254 million, their reach is vast.
Quad/Graphics’ stock has climbed by 20.6% in the last year but has nosedived by 58.2% over the 5-year period. Featuring a low forward P/E of 6.6, Quad/Graphics also allocates dividends, a rarity among small cap entities.
Should Quad/Graphics find a place on your roster?
5. Synchronoss Technologies, Inc. (SNCR)
Synchronoss Technologies focuses solely on Cloud services with a market cap of $107 million. Currently undergoing a transformation, the company is divesting its Messaging and NetworkX divisions.
Shares of Synchronoss Technologies have ascended by 28.7% in the last year but have plummeted by a staggering 88% over the 5-year horizon. Projections indicate negative earnings in 2024 and 2025. With a P/S ratio of merely 0.5, is Synchronoss Technologies an intriguing candidate for your roster?
Should Synchronoss Technologies make the cut for your selection?
Delving Deeper into Small Cap Stocks with Both Growth and Value
Tune into this week’s podcast for further insights.