Market Overview

3 Small Caps With Revenues Rising In The Double Digits

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Amid the growing discussion of a correction, investors are naturally looking for stocks that will hold up well.

Two important considerations to factor, in a decision to buy, are seeking out those publicly traded companies that have increasing revenues and that are in defensive sectors. United-Guardian (NASDAQ: UG), The Original SoupMan (OTC: SOUP) and Quadrant 4 Systems (OTC: QFOR) are three appealing small caps for riding out a market downturn, as each has a tremendous upside.

United-Guardian is a small cap that offers everything like a blue chip.

The consumer products company has high growth, no debt and a robust dividend yield of 3.33 percent. The average dividend yield for a member of the Standard & Poor's 500 Index (NYSE: SPY) is under two percent. Its profit margin is 38.30 percent, with sales and earnings rising. This is a small cap to buy in any downturn, as the short float of just 0.22 percent show few on Wall Street are expecting it to fall.

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Revenues are rising by 39.40 percent on a quarterly basis for The Original SoupMan.

The premier soup maker is increasing its market presence. A small cap, it is ranked third for brand awareness in soups behind Campbell (NYSE: CPB) and Progresso from General Mills (NYSE: GIS). This is very impressive, as Campbell Soup and General Mills are two highly visible blue chips. That high brand profile will serve the shareholders of SoupMan well if a correction does come.

Quadrant 4 System is up more than 500 percent for the last year of market action.

Its revenues are rising by 38.40 percent on a quarterly basis, according to Yahoo! Finance. This information technology company, with an emphasis in health care, posted a gross profit that is about one-quarter of revenues. In addition, annual revenues are just about equal to its market capitalization. As such, Quadrant 4 System is appealing to both growth and value investors.

The bull market has been going on for more than four years. There is no law that says it has to end soon. But if it does, long term investors should look for stocks that will be prosper.

United Guardian, Quadrant 4 System, and SoupMan all have indicators that point to gains ahead, no matter what happens to the overall market.

Posted-In: DownturnLong Ideas News Dividends Small Cap Analysis Events Economics Trading Ideas Best of Benzinga

 

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