Surprising Small Cap Winners.... Commercial Printers? More Of the Same On the Way
It's barely even a coherent 'group' and frequently misidentified when they're lucky enough to be lumped into a cluster. Today though, the planets are aligning for the obscure commercial printing stocks.... the small caps in particular.
Struggling to think of or even find one? Think along the lines of Consolidated Graphics, Inc. (NYSE: CGX) and InnerWorkings Inc. (NASDAQ: INWK). Neither are exactly household names. But, considering the S&P 600 (Small Cap) Commercial Printing Index is up 8.1% today, and the fact that the index is one of the top-performers among all small cap groups over the last six months, perhaps they should be more familiar to investors.
InnerWorkings Inc. is up 1.1% today. Consolidated Graphics, Inc. is up 10.6%... on a day when most every other stock is in the red. Neither were wildly profitable last year either (and Consolidated Graphics wasn't profitable at all). Both are currently starting at P/E projection in the 20-ish area though - a light at the end of the tunnel.
Obscure? You bet; the trend is nothing the mainstream media would ever bother talking about. The chart of the S&P 600 Commercial Printing Index is something they should be talking about though (ahead by 8.2%), as the group is not only building some technical momentum, but appears to deserve to do so.
