Wednesday, June 13, 2012

8 Small Cap Services Stocks Looking Cheap But With Solid Profitability


Small-cap stocks can offer investors greater rewards than large-cap alternatives, although this comes with its fair share of added risk. To mitigate that risk, today we searched for small cap companies whose fundamentals indicate that they know how to turn a substantial profit. We focused further on services companies that look undervalued from a price-multiple perspective. You might like the list our screen produced.The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is
... Read the rest at SeekingAlpha.com

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