The first five of the top performing stocks of 2013 are all small-caps. Is there room to grow in 2014?
It's almost 2014, and while there are many who are still concerned about flighty valuations in the stock market, the three major indices have seen a relatively strong December so far. Most analysts say that the rebound indicates the market is calming down at the prospect of tapering, and beginning to accept the implications that the economy is recovering.
Overall the stock market has performed exceptionally well in 2013, as gold and bond yields have plummeted. The optimistic climate has been good for growth stocks, so we decided to find the top five highest performing small cap stocks in the year to date, so see which companies may be poised for further growth in 2014.
With market capitalizations under $2 billion, these top performing small cap stocks are finishing the year outperforming their peers by over 400%. In addition, most have strong EPS growth projections for the next five years.
The top performer on any American index for the year was Zhone Technologies (ZHNE), an Israeli software company which is up nearly 1000% for the year. Part of the stock's performance has been attributed to a number of its technologies gaining approval for use in military and government contracts.
The second highest performing small cap on our list in 2013 was Canadian Solar (CSIQ), Canada's largest manufacturer of solar panels. Solar stocks have all performed well in 2013, even as sales at some of the firms declined.
So do you think these small cap stocks will continue to outperform in the next year? Check back for more lists of the top performing stocks of 2013.
Click on the image below to view an interactive chart of analyst ratings over time.
1. Zhone Technologies (ZHNE, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells communications network equipment for telecommunications, wireless, and cable operators worldwide. Market cap at $155.50M, most recent closing price at $5.21.
2. Canadian Solar Inc. (CSIQ, Earnings, Analysts, Financials): Engages in the design, development, manufacture, and sale of solar power products in Canada and internationally. Market cap at $1.28B, most recent closing price at $27.57.
3. SuperCom Ltd. (SPCB, Earnings, Analysts, Financials): Provides electronic monitoring, identification, and security products and solutions to governments, and private and public organizations in Europe, the United States, and Israel. Market cap at $41.03M, most recent closing price at $4.70.
4. Lannett Company, Inc. (LCI, Earnings, Analysts, Financials): Develops, manufactures, packages, markets, and distributes generic pharmaceutical products sold under generic chemical names in the United States. Market cap at $1.08B, most recent closing price at $32.22.
5. Gray Television Inc. (GTN, Earnings, Analysts, Financials): Operates as a television broadcast company in the United States. Market cap at $709.37M, most recent closing price at $12.75.
(List compiled by James Dennin. Yearly returns sourced from Zacks Invesment Research, all other data sourced from Finviz.)
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