5 Low-Debt Small Caps On Winning Streaks

James Dennin, Kapitall: Stocks had a difficult week as the S&P's tenure above the 1700 mark proved short lived – and investors renewed concern that the Federal Reserve will cut stimulis spending sooner than expected. By Friday morning, trading on the index was down 27% from its 30-day average for the time of day.

[Read more from Kapitall: Growth In Beauty: 3 Rallying Stocks With High ROE]

Some analysts are saying that much of the decline in buying has to do with revelations from several regional Fed Presidents that the Reserve could end up tapering-off its bond purchasing as early as September. The market's slide this week was the biggest since June, despite the biggest dip in jobless claims since the recession. However, not all stocks went down in this bearish week. We decided to run a screen for stocks that were able to generate positive returns over the last few days, despite the overall decline in buying.

Generally a long win-streak is not necessarily a sign of future growth. On the contrary, as a metric its often used as a way to determine when a stock price is likely to start going back down. So we further narrowed our field to include some growth indicators: high price earnings (P/E) ratios, as a high P/E often indicates that investors expect higher earnings growth in the future, and managable levels of debt – as indicated by a low  long-term debt-to-equity ratio. We were left with five small cap stocks on our list. 

Click on the image below to see sales data over time. Quarterly sales data sourced from Zacks Investment Research.

Analyze These Ideas: Compare analyst ratings for the companies mentioned

 

The List

1. Anika Therapeutics Inc. ( ANIK): Develops, manufactures, and commercializes therapeutic products for tissue protection, healing, and repair. Market cap at $319.26M, most recent closing price at $23.63.

The stock's average daily alpha vs. the S&P500 index stands at 2.03% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

P/E Ratio: 22.72

LTDebt/Equity Ratio: 0.07

 

2. Apco Oil & Gas International Inc. ( APAGF): Operates as an oil and gas exploration and production company with a focus on South America. Market cap at $460.46M, most recent closing price at $15.64.

The stock's average daily alpha vs. the S&P500 index stands at 1.27% (measured close to close, over the last month). During this period, the longest winning streak lasted 6 days (i.e. the stock's daily returns outperformed the S&P 500 for 6 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3).

P/E Ratio: 11.85

LTDebt/Equity: 0.02

 

3. Barrett Business Services Inc. ( BBS): Offers various human resource management services to small and medium-sized businesses in the United States. Market cap at $508.42M, most recent closing price at $71.79.

The stock's average daily alpha vs. the S&P500 index stands at 1.14% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

P/E Ratio: 35.19

LTDebt/Equity: 0.09

 

4. Cray Inc. ( CRAY): Engages in the design, development, manufacture, marketing, and service of high-performance computing (HPC) systems, known as supercomputers. Market cap at $1.05B, most recent closing price at $28.01.

The stock's average daily alpha vs. the S&P500 index stands at 1.32% (measured close to close, over the last month). During this period, the longest winning streak lasted 9 days (i.e. the stock's daily returns outperformed the S&P 500 for 9 consecutive days). The longest losing streak lasted 3 days (i.e. a win streak / losing streak ratio of 3).

P/E Ratio: 2801.00

LTDebt/Equity: 0.00

 

5.TrueBlue, Inc. ( TBI):Provides temporary employees for manual labor, light industrial, and skilled construction trades. Market cap at $1.08B, most recent closing price at $27.00.

The stock's average daily alpha vs. the S&P500 index stands at 0.77% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

P/E: 32.53

LTDebt/Equity: 0.09

 

( List compiled by James Dennin, Kapitall writer. Analyst ratings sourced from Zacks Investment Research, all other data sourced form Finviz.)

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