All Star small caps: Our picks gained 58% in 2017

Overview All-Star Stocks Full 500 Stocks Past Performance Methodology

Our small All Star stocks generated big gains since we last visited them in 2016.  They climbed 58.1% on average and nearly all of them gained ground.  More than half of them provided returns north of 50% and more than a dozen posted returns in excess of 100%.

The period of plenty for the All-Star stocks spanned from February 11, 2016 to November 14, 2017.  To put the overall returns into more familiar annual terms, a 58.1% gain over the period is equivalent to a 29.8% return on an annualized basis.

The top performing All Star was MKS Instruments which shot up 230%.  The firm makes equipment for the semiconductor business and is based in Andover, MA.  Its shareholders benefited from a surge in earnings and the stock got a boost when it was recently inducted into the S&P MidCap 400 index.

The second-best performer was Kadant which jumped 170%.  The industrial company based in Westford, MA. makes machines for the paper and wood processing market.  Its stock was propelled by revenue and earnings growth.

A total of 13 All Stars posted gains of more than 100% since last time and 37 of the 71 managed gains of more than 50%.  That’s pretty good even if we say so ourselves.  But it wasn’t all roses.  There were a total of two duds in the group that lost money.

Seneca Foods of Marion, NY slipped 21% on uneven trading.  Its packaged fruit and vegetable business suffered a little freezer burn due to earnings weakness.

The worst showing came from heath care products distributor Aceto, which dropped 52%.  While the company grew its revenues over the last two years, its earnings have declined each quarter (on a year-over-year basis) for more than a year.  The poor earnings trend helps to explain its slumping stock.

But the winners more than made up for the losers leading to a whopping average return of 58.1%.  We would love to see similar returns in the future.

Last year’s All-Star performance