6 Small Cap Stocks at a Good Price With Consistently Rising Profits
0.02%August 21 | MyPlanIQ portfolio symbol P_37808

We continue to look for investment ideas and this is a third review of selections derived fromNeil Hennessy, Portfolio Manager and Chief Investment Officer of The Hennessy Mutual Funds. In this case, we are looking at companies with consistently growing profits and a price to sales ratio below 1.5. Rebecca Lipman of Kapitall.com took this and applied a filter to find six small cap stocks ($300M-$2B) that met this requirement.

I would prefer to find larger companies than this but it is likely that finding a company with growing profits and not at a large premium can only be done lower down the "cap chain."

• The Andersons, Inc. (ANDE): Engages in the agriculture and transportation businesses in the United States
• AmeriGas Partners LP (APU): Operates as a retail and wholesale distributor of propane gas in the United States.
• Echo Global Logistics, Inc. (ECHO): Provides technology enabled transportation and supply chain management services in the United States.
• Netflix, Inc. (NFLX): Provides subscription based Internet services for TV shows and movies in the United States and internationally.
• Penske Automotive Group, Inc. (PAG): Operates as an automotive retailer in the United States, Puerto Rico, the United Kingdom, and Germany.
• rue21, Inc. (RUE): Operates as a specialty apparel retailer in the United States. 

Four of the selection only serve the US market. Today that may not be a bad thing but I would like to see more exposure to emerging markets. Netflix has been all over the news with their rise and fall and....? It is a relatively diverse set of equities and it will be interesting to see how they compare with our dividend bearing ETF benchmark portfolio.