Market Overview

3 Small-Cap Specialty Retailers Beating the Market in 2012


After the May swoon in the stock market, the year-to-date returns are no longer looking so impressive. The S&P 500 has now fallen 5.52% during the month, and the Nasdaq is down almost 7%. Naturally, small-cap stocks have been hit hard as well during the sell-off with the iShares Russell 2000 Index ETF (NYSE: IWM) losing almost 6%. In the wake of the losses, the S&P 500 is now nursing a gain of 5%. In order to find some stocks that are still performing well despite the correction, I scanned for small-cap stocks that are up at least 30% year-to-date and are in the specialty retail sector.

These companies have unique business models that don't fit neatly into other sectors of the market, and have carved out their own specific niches within various industries. The three names that turned up all have very bullish looking stock charts and could be primed for more gains ahead. They are MarineMax, Inc. (NYSE: HZO), Medifast, Inc. (NYSE: MED) and (NASDAQ: FLWS). Below, Benzinga highlights these three small-cap winners.

MarineMax, Inc. (HZO) - This company is a recreational boat dealer with 54 retail locations scattered throughout the United States. Obviously, this kind of business is cyclical and its fortunes will rise and fall with the economy. Because of the stock's small-cap status and MarineMax's reliance on the state of the economy, this stock is best suited for bullish macro investors. Despite continued uncertainty over the economy, HZO shares have fared well in 2012. The stock is up better than 50%, and the chart looks promising. The company currently has a market cap of $231 million. Interested traders may want to consider getting long this stock and setting a stop below the recent lows which would be in the $9.30 area. On Thursday, HZO added 1.55% and closed the session at $9.83.

Medifast, Inc. (MED) - This company is engaged in the production, distribution, and sale of weight management products and other consumable health and diet products. The product lines include weight and disease management, meal replacement, and vitamins. The stock has been strong in 2012, rising 35% to $18.52, giving the company a market cap of $288 million. The chart pattern suggests that traders could get long this stock with a stop below the May lows which are at $16.70. On Thursday, MED added another 1.04%. (FWLS) - This is a company that many readers may be familiar with. Despite the company's small-cap status, scores of consumers have heard of the popular 1-800-Flowers brand. At current levels the company has a market cap of $190 million and the stock has added around 33% in 2012. Since January, this stock has made a series of lower lows and this could be a bullish indicator going forward. Every time, FWLS dips, buyers seemingly are stepping in to support the stock. Although shares are off of their earlier highs in May, the chart still appears promising and traders could get long the name with a stop below the $2.70 area. On Thursday, FLWS fell 0.34% to $2.93.

Posted-In: Long Ideas Small Cap Analysis Technicals Intraday Update Movers Trading Ideas Best of Benzinga


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