Under the Radar: National Presto

"Under the Radar" is a daily feature that uncovers little-known companies worthy of investors' consideration. Check in at 5 every morning to find out about stocks that tend to beat their bigger brethren.

It's tough to beat professional money managers by picking brand-name stocks. The big shots have access to management, sophisticated models and economic forecasts that you don't. But there's a shortage of research among micro-caps because there are too many stocks to cover.

As a result, small companies offer the best return potential. Many lesser-known stocks are "mispriced," meaning their share price is less than the intrinsic value of their businesses. By purchasing such stocks, you can beat professional money managers by a huge margin. It's hard to do the same by sticking with General Electric(GE Quote) and 3M(MMM Quote).

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