Top 5 Small-Caps Selling at a Discount
BOSTON (TheStreet) -- The small-cap Russell 2000 Index outperformed the Dow Jones Industrial Average and S&P 500 Index in 2009. However, investors rotated into large-caps in the fall, and many smaller companies are now selling at a discount. Here are five cheap stocks with strong fundamentals.
5. Transcend Services (TRCR) provides-medical transcription services.
The numbers: Third-quarter profit increased to $1.84 million, or 67 cents a share, as revenue increased 52% to $18.5 million. The company's operating margin fell from 18.9% to 16.1%. Transcend Services has a good liquidity position, evident in its quick ratio of 1.56. Its 0.58 debt-to-equity ratio indicates manageable leverage.
The stock: Transcend Services increased 111% over the past year, outpacing all major U.S. indices. The stock trades at a price-to-earnings ratio of 20.8, a premium to medical peers. Transcend doesn't pay dividends.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV