Saturday, August 4, 2012

7 Small-Cap Stocks Earning Steady Profits, While Trading Below Value


Profitability is always a plus when considering small cap stocks. When a company consistently generates profits over time, it is an indicator that growth is on the horizon. We ran a screen for profitable small-cap stocks that also look undervalued according to their fundamentals. We arrived at a diverse list of stocks that warrant more research.EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.The Operating Profit Margin is a profitability ratio that measures the effectiveness of the company's operating efficiency. This metric allows investors to see how much profit is left after all variable costs are covered. If the company's margin
... Read the rest at SeekingAlpha.com

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