This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Small-Cap Party Might Be Over: Under the Radar

Stocks in this article: LNCE COT JJSF Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

BOSTON ( TheStreet) -- My love for food stocks is not unrequited. Lance (LNCE), Cott (COT), J&J Snack Foods (JJSF), J.M. Smucker (SJM) and TreeHouse Foods (THS) -- companies I've highlighted in our "Under the Radar" series -- have jumped more than 19% since mid-June, outperforming the 17% gain of the S&P 500 Index.

Our quantitative model deemed these stocks undervalued at the time, but investors have since bid them up to excessive prices. TreeHouse, Lance and J&J Snack are trading at sizable premiums to the market.

Many investors are bracing for a market correction after stocks hit their highest levels in almost a year on Wednesday. Food stocks are usually considered steady bets because of their low volatility and resistance to economic swings. But when safe plays jump this much in a short period, it makes you question how safe they truly are.

I decided to review companies I've profiled in "Under the Radar." Since the series began in May, my picks have risen 9% on average. Sixty four of the 91 stocks I've recommended, or 70%, have gained value. Of the decliners, the average drop is 4%.

Top performers include Ebix (EBIX), NVE (NVEC), Broadpoint Gleacher Securities Group (BPSG), Marvel Entertainment (MVL) and Knight Capital Group (NITE). Each climbed more than 30% since they appeared in "Under the Radar."

In total, 37% of my picks have posted a double-digit gain, with 19% rising 20% or more.

Individual investors watched their portfolios lose more than a third of their value last year as the recession took hold. It's great that so many have been able to recover some of their losses, but a sense of entitlement to further appreciation is dangerous.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,918.16 +113.36 0.64%
S&P 500 2,073.65 +3.00 0.14%
NASDAQ 4,773.1120 +7.7320 0.16%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs