Thursday, May 24, 2012

9 Profitable Small Cap Stocks Targeted To Grow


Interested in following smaller companies? Looking for ways to dig deeper into a company's profitability? Do you prefer stocks that can bring in profits over the next year? If so, we ran a screen keeping this idea in mind.Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.Return on Assets [ROA] illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well,
... Read the rest at SeekingAlpha.com

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