Top 5 Small Caps Led By 3D Systems, Ruger Rea
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Top 5 Small Caps Led By 3D Systems, Ruger
In high tech, the mantra is smaller, faster, cheaper.
Smaller-cap companies in general are often more nimble, and roll out new products and processes cheaper and faster than larger rivals. Their stocks have more upside for this reason and because mutual funds haven't amassed huge holdings.
IBD's Screen Of The Day is Small Cap Leaders, those small, nimble stocks. Here are the top five Small Cap Leaders that are also in the IBD 50 list of the 50 best stocks by any measure.
3D Systems ( DDD )
This maker of 3D printers often pops up on lists of top-rated companies. It's the leader in an emerging market, making 3D printers that can print prototypes and production units from data input via computer, cheaper than traditional production. It has a market cap of $2.49 billion and is also No. 1 on the IBD 50.
Sales for 3D and its smaller rival Stratasys ( SSYS ) have rocketed the last couple of years. 3D printer tags have dropped below $500 and the printers are moving into consumer products, which could boost sales.
3D shares fell 0.7% Wednesday. Stratasys, also on the IBD 50, lost 1.1%.
CommVault Systems ( CVLT )
Data deduplication is a term that doesn't easily roll off the tongue, but this company's software uses it to back up and archive data and gets rid of duplicate files.
At the end of October CommVault, with a market value of just over $3 billion, reported earnings and revenue that blew analysts' estimates away. Profit and sales have grown at double-digit rates for more than two years.
Shares fell a little more than 1% Wednesday, paring bigger intraday losses. The stock is near last week's record high.
Sturm Ruger ( RGR )
Gun maker Sturm Ruger ranks No. 3 on the Small Cap Leaders screen and is No. 2 on the IBD 50 list. Gun sales have been strong in recent years on security concerns, and got another boost on President Obama's re-election. Some worry the administration may try to crack down on gun ownership.
Sturm Ruger shares took a hit Wednesday, falling 3.5% to 52.52 as the company went ex dividend. But it's still near the Nov. 30 peak of 55.52.
Rival Smith & Wesson ( SWHC ) reports fiscal Q2 earnings late Thursday . Analysts forecast strong profit and sales gains for the company, which has beaten Wall Street's outlook for four quarters a row. Smith & Wesson fell less than 1% to 10.58 Wednesday, but has been consolidating since the start of October.