This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 5 Small-Cap Stocks for June 12

Diamond Foods (DMND - Get Report) processes and markets culinary, snack, in-shell and ingredient nuts, which are primarily sold through two main product lines: Diamond of California and Emerald Nuts. We upgraded the company's stock from a hold to a buy in April 2009 on the basis of Diamond's good cash flow from operations, notable return on equity and growth in revenue, net income and EPS.

For the third quarter of fiscal 2009, Diamond reported revenue growth of 11% year over year. Although this trailed the industry average, EPS improvement from 7 cents to 16 cents per share indicates that the company's revenue growth trickled down to its bottom line. EPS growth has in fact been trending positive for the past two years, and we feel this should continue. Diamond's net income increased significantly in the third quarter when compared with the prior year's quarter, rising 144.1% from $1.11 million to $2.7 million. Net operating cash flow also increased significantly, rising 126.48% to $8.75 million. In addition, the company's return on equity improved slightly and can therefore be considered a modest strength for Diamond.

Looking ahead to full-year results for fiscal 2009, Diamond anticipates non-GAAP EPS in the range of $1.31 to $1.36, along with net sales of $550 million to $565 million. Guidance was raised from previously announced expectations on the basis of third quarter results. We find the company's debt management to be generally poor, but feel that the strengths detailed above should outweigh this potential weakness.

NCI (NCIT - Get Report) is a provider of information technology services and solutions to U.S. federal government agencies. The company focuses on designing, implementing, maintaining and upgrading IT systems and networks. NCI has been rated a buy since February 2008 based on its healthy growth in revenue and net income, solid stock price performance, impressive record of EPS growth and largely solid financial position.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
ATRI $326.80 0.00%
DMND $27.88 0.00%
HWKN $40.04 0.00%
NCIT $10.08 0.00%
TMP $51.35 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs