100 Sizzling U.S. small cap stocks

The stock market can be a scary place. It’s why some investors gravitate to the biggest, strongest and most well-known companies when building their portfolios. Sticking with big stocks can be reassuring, but the approach is not without its flaws. Giant companies tend to be more stable than smaller firms, but they also have very little room to grow. It’s hard to imagine a colossus like Walmart growing to 10 times its size any time soon. On the other hand, a few small firms will mushroom to become the giants of tomorrow. The propensity for small stocks to grow quickly is reflected in their long-term returns. Dartmouth College professor Kenneth French investigates the inner workings of the markets. In one study, he sorted U.S. stocks into three groups by market capitalization (a stock’s price times its share count). The groups were tracked for a year, then the process was repeated. As a result, he was able to figure out how small, medium and large stocks fared over the long term. The smallest 30% of stocks did the best, with average annual gains of 12.3% from 1960 through to the end of 2013. The middle group did nearly as well with returns of 12.1% per year. However, the largest 30% of stocks lagged behind and advanced only 9.8% annually. You can see the return history of each group in this chart. Paystothinksmall

The bargain bin is often stuffed to the brim with small stocks, which brings us to a bit of a confession. While working on the annual MoneySense Top 500 ranking of large U.S. stocks (from our December/January 2014 issue), we usually take a peek to see which small stocks pass the test. Doing so often yields a slew of good ideas. It’s one reason why we’re pleased to present you with our first-ever “Sizzling Small Stocks” ranking. It evaluates 1,000 stocks for their appeal as value investments and growth investments, using the same methodology as the annual Top 500 ranking. But this time the focus is on smaller firms with market capitalizations ranging from roughly $200 million to just over $2 billion. (All figures in U.S. dollars.) We decided to focus on U.S. stocks for several reasons. The Canadian small-cap market has relatively few names and is dominated by energy and mining companies, which can be highly speculative. The U.S. offers far more variety and sector diversification. But never fear, we expect to highlight a few Canadian small caps in the future. Once again we take a hard-nosed approach when searching for the best prospects and consider only the numbers. Our intuitions or opinions about a particular firm or industry don’t enter into it. While we like small stocks, the very tiniest firms can cause problems. For instance, many of them trade infrequently and they can suffer from a host of other peculiarities. It’s why we start with stocks that have market capitalizations and revenues of at least $200 million. That might sound like a great deal of money, but it’s quite small compared to a big company like Microsoft, which earns about $200 million every three days. We then grade the 1,000 companies above our lower limit using data from Bloomberg. The smallest stock we consider is Ampco-Pittsburgh (AP), which has a market capitalization just over $200 million. The largest is PrivateBancorp (PVTB), with a market capitalization of a little more than $2.2 billion. If our suspicions are correct, most investors haven’t heard of either one.

Making the grade

Every stock is first evaluated for its growth potential. Those with the best records are awarded As, the next best get Bs, and so on, all the way down to Fs for those in need of improvement. Then every stock is graded based on its appeal as a value investment. The best bargains get As while pricey firms that trade at lofty prices take home Fs. To get top marks each stock must pass a series of strict tests. On the growth side, we favour firms that have increased their sales and earnings per share at a good clip. We also like strong returns on equity, healthy market performance over the last year, and low-to-moderate price-to-sales ratios. On the value front, we appreciate stocks selling at modest price-to-book-value ratios compared to their peers and to the markets overall. We view high debt loads negatively and give extra points to profitable ventures that pay dividends. To get to the very top of the class stocks ideally should possess all these qualities. The very top prospects get a coveted double-A rating, which makes them outstanding growth and value candidates. Alas, none of the small stocks picked up the double-A prize this first time around. However, we believe the 50 All-Star stocks that managed to get at least one A and one B are well worth your consideration. Before you load up on small stocks, keep in mind they can be risky. While we think our top stocks have what it takes to be successful, the future is far from certain. That’s why it’s best to build a broadly diversified portfolio that balances small stocks with other holdings, like international stocks and a reasonable amount of fixed income. But we believe that our guide is a great place to start your search for interesting candidates and it contains a wealth of information to help you on your way. The 100 stocks with the highest grades are displayed in the tables on the following pages, which contain detailed data on each one. In addition, because of its huge size, we have posted the 1,000-stock table for use by subscribers.

Small wonders

While there are scores of interesting stocks in the tables, a few stand out for different reasons. We were interested to see Fred’s (FRED) make an appearance. The company was spotted, not that long ago, on a screen for defensive investors inspired by famed value investor Benjamin Graham. The Memphis-based firm operates more than 700 discount stores mostly in the southern U.S. and got an A for value and B for growth. Home builder M.D.C. Holdings (MDC) survived the crash of 2008, which was hard on businesses tied to U.S. real estate. These days the economy is perking up and there are signs real estate is starting to recover stateside. The numbers say M.D.C. is worth a second look because it got an A for value and B for growth. Biglari Holdings (BH) is a small conglomerate run by value-oriented hedge fund manager Sardar Biglari. The firm was mainly in the restaurant business but its recent purchase of MAXIM indicates it is branching out. However, investors would be wise to think carefully about Mr. Biglari because the size of his compensation package is a little worrisome. Those are just a few of the stocks that can be found in the following table. Remember that stock screens have their limitations. So, before you invest, make sure a company’s situation hasn’t changed in some important way. This can include reading the latest press releases and regulatory filings, and scanning newspaper stories to get up to speed on all the most recent developments. As always, we try to put you on the path to a profitable future. But be sure to go to the market only after you’ve done your homework.

The upper middle class

Many investors like the familiarity of large-cap names, while others prefer the promise of a big payoff with small caps. Meanwhile, mid-cap stocks—generally those with a market capitalization between $2 billion and $10 billion—are often overlooked. TheUpperMiddleClass

The 10 U.S. stocks in the table below were too large to make our Top 100 list, but they may offer similar potential. These mid-caps managed to get one A and one B according to the value and growth screens we used for our small-cap stocks. CNO Financial, Jones Lang LaSalle and Legg Mason are in the financial services industry, which is more diversified in the U.S. than in Canada. The others are in the energy, industrial and technology sectors and have more potential for growth.

It pays to think small

Though they carry added risk, the reward offered by small-cap stocks make them worth a second look. From 1960 through 2013, small-cap U.S. stocks returned 12.3% annually, compared with 12.1% for mid-caps and 9.8% for the largest stocks. See the 100 Sizzling U.S. small cap stocks below. Subscribers can also download the Excel file featuring all 100 picks as well as the top 1,000 overall using their subscriber number.

Name	Ticker	Industry Group	Industry Subgroup	Price (Feb 19, 2014)	Revenues ($M)	Market Capitalization ($M)	Price/Book	Price/TangibleBook	P/E (Last 12 Months)	Forward P/E	Dividend Yield	Leverage (Assets/Equity)	Value Grade	1Yr Total Return (%)	3 Yr EPS Growth (%)	3 Yr SPS Growth (%)	1 Yr Total Asset Growth (%)	Return on Equity (%)	Price/Sales	Growth Grade
Aceto	ACET	Chemicals	Chemicals-Diversified	$18.24	$520	$518	2.37	3.56	16.1	14.1	1.3%	1.56	B	76.9%	43.8%	8.1%	7.7%	15.7%	0.96	A
AH Belo	AHC	Media	Publishing-Newspapers	$9.82	$392	$215	1.13	1.38	13.6	29.0	3.3%	1.65	A	92.0%	28.5%	-8.1%	-4.4%	11.9%	0.55	B
American Railcar Industries	ARII	Miscellaneous Manufacturer	Miscellaneous Manufacturer	$49.97	$751	$1,067	2.57	2.62	12.3	11.6	2.0%	1.97	B	22.6%	73.3%	39.9%	21.4%	22.8%	1.42	A
Arctic Cat	ACAT	Leisure Time	Recreational Vehicles	$46.02	$698	$605	2.91	-	17.2	13.8	0.9%	1.61	B	28.3%	55.0%	26.2%	10.5%	18.3%	0.88	A
Arkansas Best	ABFS	Transportation	Transport-Truck	$31.63	$2,300	$817	1.57	2.22	56.5	15.1	0.4%	1.95	A	176.8%	34.5%	10.7%	-1.7%	3.2%	0.35	B
Atlantic Tele-Network	ATNI	Telecommunications	Telephone-Integrated	$60.11	$612	$947	1.51	1.75	3.1	-	1.8%	1.55	A	37.3%	95.0%	7.3%	20.2%	64.7%	1.54	B
Baldwin & Lyons	BWINB	Insurance	Property/Casualty Ins	$23.75	$291	$350	0.93	-	9.7	-	4.2%	2.81	A	4.0%	13.4%	5.0%	9.2%	10.1%	1.22	B
Bel Fuse	BELFA	Electronics	Electronic Components-Misc	$19.32	$349	$222	1.00	1.28	13.3	-	1.2%	1.44	A	22.9%	7.5%	5.7%	11.7%	3.2%	0.63	B
Benchmark Electronics	BHE	Electronics	Electronic Components-Misc	$23.60	$2,506	$1,275	1.04	1.15	11.4	15.8	0.0%	1.35	B	30.7%	17.4%	6.2%	10.4%	9.4%	0.51	A
Biglari Holdings	BH	Retail	Retail-Restaurants	$423.01	$758	$728	1.15	1.22	4.1	34.3	0.0%	1.71	B	20.9%	67.5%	2.9%	29.4%	32.7%	0.85	A
Carriage Services	CSV	Commercial Services	Funeral Services&Rel Items	$20.98	$215	$383	2.52	-	20.2	16.6	0.5%	4.77	B	29.6%	33.2%	4.6%	1.2%	13.4%	1.76	A
Cash America International	CSH	Retail	Retail-Pawn Shops	$40.97	$1,797	$1,151	1.14	3.82	8.2	9.4	0.3%	1.92	A	-19.6%	8.4%	12.9%	14.5%	13.7%	0.65	B
CBIZ Inc	CBZ	Commercial Services	Commercial Services-Finance	$8.90	$726	$422	1.16	-	5.1	15.0	0.0%	2.40	B	37.3%	63.6%	7.0%	-7.5%	25.6%	0.60	A
Chase	CCF	Miscellaneous Manufacturer	Diversified Manufacturer	$31.04	$217	$282	2.36	3.87	12.6	-	1.4%	1.95	B	67.5%	18.2%	19.1%	7.1%	20.6%	1.28	A
Comfort Systems USA	FIX	Building Materials	Bldg Prod-Air&Heating	$16.08	$1,343	$601	2.08	4.46	22.6	18.5	1.4%	1.94	B	27.1%	18.2%	9.0%	0.5%	9.4%	0.44	A
CONMED	CNMD	Healthcare-Products	Medical Instruments	$48.54	$763	$1,340	2.21	34.86	37.3	24.4	1.6%	1.80	B	60.9%	7.0%	3.4%	0.6%	5.9%	1.76	A
Cooper Tire & Rubber	CTB	Auto Parts&Equipment	Rubber-Tires	$23.94	$3,904	$1,563	1.76	2.23	6.3	-	1.8%	2.85	A	-7.1%	17.3%	6.1%	6.8%	31.5%	0.39	B
Dawson Geophysical	DWSN	Oil&Gas Services	Seismic Data Collection	$29.61	$297	$239	1.13	1.13	51.9	19.2	1.1%	1.36	A	-8.7%	38.5%	6.6%	1.2%	2.2%	0.79	B
Delek US Holdings	DK	Oil&Gas	Oil Refining&Marketing	$28.99	$9,133	$1,744	1.79	1.97	9.2	10.8	2.1%	2.41	A	-23.3%	97.5%	32.1%	20.6%	20.7%	0.19	B
Dynamic Materials	BOOM	Metal Fabricate/Hardware	Metal Processors&Fabricators	$22.50	$211	$310	1.81	3.23	30.4	15.6	0.7%	1.34	A	29.0%	24.9%	9.5%	-2.7%	6.2%	1.44	B
EMC Insurance Group	EMCI	Insurance	Property/Casualty Ins	$27.54	$563	$363	0.89	0.89	8.3	11.2	3.3%	3.28	A	5.2%	11.5%	8.2%	3.6%	10.2%	0.64	B
Encore Wire	WIRE	Electrical Components&Equip	Wire&Cable Products	$50.61	$1,158	$1,047	2.35	2.35	22.3	16.0	0.2%	1.18	B	47.7%	50.9%	12.6%	10.5%	9.6%	0.90	A
FBR & Co	FBRC	Diversified Financial Services	Finance-Invest Banker/Broker	$25.75	$260	$292	0.96	0.95	3.2	-	0.0%	1.41	B	48.0%	75.3%	11.5%	23.1%	36.5%	1.20	A
Finish Line	FINL	Retail	Retail-Apparel/Shoe	$25.03	$1,594	$1,230	2.22	2.32	18.1	13.3	1.3%	1.41	B	34.1%	5.1%	13.0%	9.0%	12.9%	0.76	A
Fred's	FRED	Retail	Retail-Discount	$17.25	$1,978	$635	1.41	1.57	22.1	19.2	1.4%	1.55	A	27.7%	4.2%	5.1%	1.6%	6.5%	0.32	B
Haverty Furniture	HVT	Retail	Retail-Home Furnishings	$25.97	$732	$575	2.08	2.08	19.7	16.4	1.2%	1.46	B	48.2%	33.1%	4.4%	1.0%	10.6%	0.79	A
Independence Holding	IHC	Insurance	Life/Health Insurance	$12.18	$544	$215	0.79	1.03	10.7	-	0.6%	4.41	A	24.2%	32.4%	6.7%	3.0%	7.3%	0.40	B
Inter Parfums	IPAR	Cosmetics/Personal Care	Cosmetics&Toiletries	$32.00	$635	$986	2.33	3.19	6.9	28.5	1.5%	1.21	B	37.4%	75.6%	10.8%	33.9%	40.8%	1.55	A
Kadant	KAI	Machinery-Diversified	Machinery-General Industry	$36.55	$344	$408	1.55	2.66	17.4	14.0	1.4%	1.51	A	34.8%	12.1%	12.2%	10.1%	10.7%	1.18	B
Kaiser Aluminum	KALU	Mining	Metal-Aluminum	$68.33	$1,298	$1,231	1.14	1.23	12.2	17.7	2.0%	1.63	A	7.2%	98.0%	7.3%	1.0%	9.7%	0.98	B
Kansas City Life Insurance	KCLI	Insurance	Life/Health Insurance	$47.26	$449	$519	0.72	0.72	16.8	-	2.3%	6.24	A	25.9%	22.5%	3.2%	-0.2%	4.2%	1.16	B
Marcus	MCS	Lodging	Hotels&Motels	$13.75	$424	$372	1.16	1.35	19.4	16.7	2.5%	2.29	A	9.2%	4.1%	6.3%	-1.0%	5.7%	0.88	B
Marten Transport	MRTN	Transportation	Transport-Truck	$18.93	$659	$630	1.76	1.76	20.8	17.1	0.5%	1.46	A	36.1%	14.5%	8.1%	7.2%	8.8%	0.95	B
MDC Holdings	MDC	Home Builders	Bldg-Residential/Commercial	$28.41	$1,680	$1,386	1.14	-	4.4	15.3	3.5%	2.14	A	-27.8%	87.4%	18.9%	33.4%	29.8%	0.82	B
Multi-Color	LABL	Commercial Services	Printing-Commercial	$33.52	$681	$550	1.87	-	15.9	14.3	0.6%	3.01	B	40.2%	12.3%	18.9%	5.8%	12.2%	0.80	A
Myers Industries	MYE	Miscellaneous Manufacturer	Rubber/Plastic Products	$19.40	$825	$657	2.72	4.18	24.9	15.4	1.9%	2.00	B	42.9%	38.3%	5.5%	-0.6%	13.3%	0.79	A
National Healthcare	NHC	Healthcare-Services	Medical-Nursing Homes	$49.84	$776	$701	1.38	1.43	12.8	-	2.6%	1.44	A	7.1%	14.0%	3.3%	7.7%	10.9%	0.89	B
National Western Life Insurance	NWLI	Insurance	Life/Health Insurance	$207.01	$751	$752	0.53	-	7.9	-	0.2%	7.50	A	25.7%	12.1%	10.1%	4.9%	6.9%	0.97	B
Newpark Resources	NR	Oil&Gas Services	Oil-Field Services	$11.11	$1,107	$971	1.67	2.12	14.2	14.4	0.0%	1.67	B	24.6%	19.2%	17.8%	-2.6%	11.9%	0.85	A
Oil-Dri Corp of America	ODC	Chemicals	Chemicals-Specialty	$33.91	$253	$239	2.28	2.41	17.9	-	2.2%	1.70	B	24.4%	9.6%	5.2%	2.1%	13.4%	0.93	A
Primoris Services	PRIM	Pipelines	Pipelines	$32.45	$1,887	$1,673	4.44	7.97	26.2	19.9	0.4%	2.70	B	64.2%	24.7%	25.1%	25.9%	18.6%	0.89	A
Renewable Energy Group	REGI	Energy-Alternate Sources	Energy-Alternate Sources	$11.40	$1,414	$441	0.74	0.87	2.9	8.4	0.0%	1.21	B	46.7%	52.7%	35.1%	27.4%	31.0%	0.26	A
Standard Motor Products	SMP	Auto Parts&Equipment	Auto/Truck Parts-Replacement	$31.33	$957	$720	2.08	2.65	14.8	12.3	1.7%	1.83	B	32.7%	50.4%	5.2%	2.8%	14.9%	0.75	A
Strattec Security	STRT	Auto Parts&Equipment	Auto/Truck Parts-Original	$62.64	$316	$218	1.87	-	19.0	13.8	0.7%	1.49	B	106.4%	36.1%	9.3%	6.5%	11.5%	0.67	A
Tesco	TESO	Oil&Gas Services	Oil-Field Services	$21.00	$526	$821	1.63	1.76	18.6	15.7	0.0%	1.20	B	60.2%	152.6%	13.3%	5.5%	9.2%	1.55	A
Titan International	TWI	Auto Parts&Equipment	Auto/Truck Parts-Original	$17.26	$2,164	$924	1.34	1.43	25.8	15.4	0.1%	2.74	A	-35.9%	83.6%	17.4%	68.2%	8.0%	0.42	B
Unifi	UFI	Apparel	Textile-Apparel	$23.24	$698	$442	1.56	1.60	16.5	21.5	0.0%	1.56	B	55.6%	9.3%	2.3%	-3.2%	9.4%	0.65	A
UniFirst	UNF	Textiles	Linen Supply&Rel Items	$104.48	$1,370	$2,093	1.99	2.99	17.3	17.1	0.1%	1.27	B	22.8%	15.8%	9.0%	2.3%	12.2%	1.50	A
Universal Forest Products	UFPI	Building Materials	Bldg Prod-Wood	$54.59	$2,470	$1,086	1.71	2.34	25.3	16.4	0.8%	1.45	A	35.6%	33.9%	8.3%	12.0%	5.4%	0.44	B
Weyco Group	WEYS	Apparel	Footwear&Related Apparel	$25.51	$300	$276	1.53	2.04	14.9	-	2.8%	1.42	A	12.2%	13.5%	11.7%	-5.8%	10.5%	0.92	B
1st Source	SRCE	Banks	Commercial Banks-Central US	$29.52	$257	$718	1.23	1.44	13.3	12.9	2.3%	8.07	A	30.9%	22.1%	-3.8%	5.8%	9.6%	2.80	C
Adams Resources & Energy	AE	Oil&Gas	Oil Refining&Marketing	$66.90	$3,857	$282	1.81	-	9.7	-	1.3%	3.05	C	75.3%	78.1%	22.6%	22.1%	20.3%	0.07	A
American Equity Investment Life	AEL	Insurance	Life/Health Insurance	$20.90	$2,483	$1,443	1.08	-	5.4	9.6	0.9%	28.61	C	51.9%	74.4%	24.2%	12.8%	16.3%	0.55	A
American Vanguard	AVD	Chemicals	Chemicals-Other	$23.29	$409	$667	2.58	4.45	14.6	15.1	0.9%	1.79	B	-28.8%	206.1%	22.0%	16.5%	19.2%	1.61	B
Barnes Group	B	Miscellaneous Manufacturer	Diversified Manufacturer	$37.40	$1,128	$1,973	1.94	10.03	7.4	15.8	1.2%	1.75	B	51.6%	80.8%	1.4%	-5.3%	30.4%	1.79	B
Bridgepoint Education	BPI	Commercial Services	Schools	$18.04	$815	$985	1.78	1.82	15.3	26.3	0.0%	1.39	B	63.1%	-	7.6%	2.4%	12.4%	1.20	B
Clearwater Paper	CLW	Forest Products&Paper	Paper&Related Products	$66.52	$1,890	$1,401	2.32	4.18	13.3	15.2	0.0%	2.88	C	41.7%	15.8%	12.7%	6.8%	18.7%	0.78	A
Columbus McKinnon	CMCO	Machinery-Diversified	Machinery-Material Handling	$25.81	$567	$510	1.90	3.56	6.9	14.3	0.0%	2.20	C	26.6%	56.9%	3.1%	14.3%	31.8%	0.89	A
Computer Task Group	CTG	Computers	Computer Services	$16.93	$424	$315	2.86	4.36	15.5	15.7	1.2%	1.52	B	-15.4%	29.7%	9.2%	7.9%	16.1%	0.61	B
Crawford & Co	CRD/A	Insurance	Insurance Brokers	$7.73	$1,282	$439	2.52	-	7.7	8.6	2.6%	4.84	C	37.8%	32.9%	5.8%	0.5%	32.7%	0.33	A
CSG Systems International	CSGS	Software	Data Processing/Management	$26.60	$747	$898	2.45	26.60	16.6	12.4	2.3%	2.37	C	32.7%	32.4%	11.7%	2.6%	14.8%	1.14	A
ePlus Inc	PLUS	Internet	B2B/E-Commerce	$57.36	$1,034	$463	1.79	2.06	13.2	11.4	0.0%	1.95	B	19.4%	14.5%	8.6%	1.4%	14.2%	0.44	B
Federal Agricultural Mortgage	AGM	Diversified Financial Services	Finance-Mtge Loan/Banker	$29.86	$299	$315	1.06	-	4.7	6.6	1.9%	21.62	B	-19.6%	63.4%	9.4%	4.7%	22.8%	1.07	B
Flagstar Bancorp	FBC	Savings&Loans	S&L/Thrifts-Central US	$21.14	$981	$1,186	1.02	1.18	4.8	14.5	0.0%	6.60	B	41.5%	29.4%	-37.0%	-33.2%	23.9%	1.21	B
FutureFuel	FF	Energy-Alternate Sources	Energy-Alternate Sources	$16.63	$394	$721	2.28	-	13.3	-	2.9%	1.31	C	24.9%	34.8%	9.9%	1.1%	17.2%	1.81	A
Great Southern Bancorp	GSBC	Banks	Commercial Banks-Central US	$27.76	$209	$379	1.18	1.19	11.4	13.2	2.6%	9.35	A	18.8%	17.1%	-1.4%	-10.0%	10.5%	1.80	C
HCI Group	HCI	Insurance	Property/Casualty Ins	$41.37	$227	$476	2.85	-	7.2	9.1	2.7%	2.81	C	100.1%	100.8%	27.8%	65.9%	45.5%	1.93	A
Heartland Financial USA	HTLF	Banks	Commercial Banks-Central US	$25.72	$289	$473	1.32	1.64	12.4	12.2	1.6%	13.48	B	10.6%	22.2%	3.0%	18.7%	10.5%	1.53	B
ICF International	ICFI	Commercial Services	Consulting Services	$34.00	$952	$676	1.45	21.86	16.4	15.0	0.0%	1.52	B	37.2%	13.7%	6.3%	1.8%	9.2%	0.70	B
John B Sanfilippo & Son	JBSS	Food	Food-Misc/Diversified	$22.51	$743	$246	1.16	1.20	11.3	-	0.0%	1.92	B	25.1%	44.7%	5.0%	2.8%	10.4%	0.33	B
Johnson Outdoors	JOUT	Leisure Time	Leisure&Rec Products	$22.18	$418	$221	1.14	1.40	12.5	11.2	1.4%	1.61	A	2.7%	21.0%	1.0%	2.8%	9.2%	0.51	C
Kemper	KMPR	Insurance	Multi-line Insurance	$37.69	$2,426	$2,092	1.07	1.27	9.9	14.7	2.5%	3.73	B	21.8%	8.5%	-0.8%	-4.4%	10.3%	0.88	B
LB Foster	FSTR	Metal Fabricate/Hardware	Metal Processors&Fabricators	$42.93	$582	$443	1.42	1.91	15.2	13.2	0.3%	1.36	A	-3.6%	16.7%	10.6%	-0.4%	9.7%	0.75	C
LeapFrog Enterprises	LF	Toys/Games/Hobbies	Toys	$6.78	$554	$463	1.10	1.20	5.6	29.1	0.0%	1.20	B	-25.7%	159.3%	6.4%	19.2%	22.2%	0.84	B
Life Time Fitness	LTM	Leisure Time	Recreational Centers	$43.46	$1,206	$1,853	1.62	1.70	14.7	13.7	0.0%	1.98	B	2.8%	13.3%	8.5%	11.4%	10.8%	1.49	B
Lithia Motors	LAD	Retail	Retail-Automobile	$62.54	$4,006	$1,619	2.73	3.01	15.3	13.7	0.8%	3.23	C	44.2%	100.2%	24.4%	15.6%	22.0%	0.40	A
M/I Homes	MHO	Home Builders	Bldg-Residential/Commercial	$23.29	$1,037	$567	1.15	1.31	3.9	15.6	0.0%	2.25	B	1.3%	83.9%	9.2%	33.5%	39.8%	0.54	B
Magellan Health Services	MGLN	Healthcare-Services	Medical-HMO	$59.41	$3,368	$1,608	1.44	2.42	11.2	22.5	0.0%	1.46	B	15.1%	6.4%	12.8%	10.5%	13.6%	0.48	B
MYR Group	MYRG	Engineering&Construction	Building&Construct-Misc	$23.60	$896	$499	1.76	2.19	14.4	13.8	0.0%	1.81	B	-3.8%	31.0%	11.8%	11.6%	13.1%	0.55	B
Nautilus	NLS	Leisure Time	Athletic Equipment	$8.32	$207	$259	3.12	3.86	4.9	18.4	0.0%	1.48	C	35.9%	72.2%	6.8%	67.0%	89.1%	1.25	A
Navigant Consulting	NCI	Commercial Services	Consulting Services	$16.98	$844	$833	1.79	-	16.2	15.3	0.0%	1.51	B	32.0%	28.9%	6.0%	-5.3%	9.0%	1.00	B
Nelnet	NNI	Diversified Financial Services	Finance-Consumer Loans	$36.10	$1,132	$1,674	1.21	1.34	5.8	6.4	1.1%	19.26	B	9.7%	23.8%	6.0%	8.7%	22.6%	1.49	B
Northwest Pipe	NWPX	Metal Fabricate/Hardware	Steel Pipe&Tube	$35.71	$497	$337	1.22	1.31	16.3	14.8	0.0%	1.56	B	47.0%	68.4%	11.7%	-4.7%	7.8%	0.68	B
Nutraceutical International	NUTR	Pharmaceuticals	Vitamins&Nutrition Prod	$26.02	$210	$256	1.80	2.49	14.5	-	0.0%	1.39	B	48.3%	4.4%	7.3%	8.3%	13.3%	1.21	B
Omega Protein	OME	Pharmaceuticals	Vitamins&Nutrition Prod	$11.46	$241	$236	1.02	1.15	11.6	13.0	0.0%	1.40	B	46.7%	34.2%	10.6%	7.1%	9.3%	0.95	B
OmniVision Technologies	OVTI	Semiconductors	Electronic Components-Semiconductor	$15.38	$1,531	$861	0.93	1.00	10.5	10.3	0.0%	1.35	B	-5.4%	12.7%	25.7%	5.6%	9.3%	0.55	B
PC Connection	PCCC	Retail	Retail-Computer Equip	$20.16	$2,222	$528	1.65	1.99	14.8	13.5	0.0%	1.57	C	38.2%	16.5%	5.2%	7.0%	11.7%	0.24	A
Preformed Line Products	PLPC	Telecommunications	Telecommunication Equip	$63.27	$415	$339	1.35	1.52	14.9	-	1.3%	1.37	A	-10.1%	-	8.9%	0.3%	9.4%	0.82	C
Rent-A-Center	RCII	Commercial Services	Rental Auto/Equipment	$24.72	$3,104	$1,323	0.98	-	10.6	10.3	3.7%	2.18	A	-33.2%	-	10.5%	4.9%	11.7%	0.44	C
Roadrunner Transportation	RRTS	Transportation	Transport-Truck	$21.90	$1,361	$821	1.64	-	16.2	14.5	0.0%	1.73	B	-1.5%	156.5%	14.6%	23.2%	11.0%	0.58	B
S&T Bancorp	STBA	Banks	Commercial Banks-Eastern US	$21.44	$202	$638	1.12	1.61	12.7	12.6	3.0%	7.93	A	19.2%	8.3%	3.7%	0.1%	9.1%	3.14	C
Sanderson Farms	SAFM	Food	Poultry	$73.58	$2,683	$1,697	2.52	-	13.0	12.5	1.1%	1.38	B	40.6%	-	10.5%	3.1%	21.1%	0.62	B
Select Medical Holdings	SEM	Healthcare-Services	Medical-Hospitals	$11.16	$2,971	$1,557	2.03	-	12.4	11.9	3.6%	3.50	B	17.8%	18.6%	14.1%	2.2%	15.1%	0.51	B
State Auto Financial	STFC	Insurance	Property/Casualty Ins	$19.57	$1,117	$795	1.08	1.08	13.0	13.7	2.0%	3.38	A	22.1%	35.0%	-6.7%	0.1%	-	0.71	C
Stewart Information Services	STC	Insurance	Property/Casualty Ins	$35.78	$1,928	$805	1.25	1.97	13.0	14.0	0.3%	2.01	B	39.2%	76.4%	-0.3%	6.4%	18.5%	0.42	B
Stone Energy	SGY	Oil&Gas	Oil-Exploration&Production	$35.57	$991	$1,778	1.78	1.78	11.1	17.8	0.0%	3.05	C	68.7%	184.1%	12.5%	18.1%	17.7%	1.74	A
Take-Two Interactive Software	TTWO	Software	Entertainment Software	$19.57	$2,455	$1,918	2.11	3.51	4.9	14.8	0.0%	2.42	C	26.1%	43.1%	15.9%	66.9%	59.8%	0.77	A
United Fire Group	UFCS	Insurance	Multi-line Insurance	$29.93	$877	$760	1.02	1.06	10.0	12.6	2.4%	5.00	B	23.7%	20.6%	15.5%	-0.4%	6.3%	0.87	B
USANA Health Sciences	USNA	Pharmaceuticals	Vitamins&Nutrition Prod	$75.28	$718	$1,044	4.01	5.22	13.2	12.2	0.0%	1.41	C	57.9%	24.8%	15.9%	37.8%	35.4%	1.45	A
Walter Investment Management	WAC	Diversified Financial Services	Finance-Mtge Loan/Banker	$27.00	$1,527	$999	0.87	2.76	4.9	4.6	0.0%	14.60	B	-45.6%	61.0%	82.0%	321.7%	24.1%	0.65	B