11 Small Cap Service Stocks With Low P/E and Institutional Buying

11 Small Cap Service Stocks With Low P/E and Institutional Buying

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Looking for smaller and potentially undervalued companies to add to your portfolio? We ran a screen with this in mind.

We started by screening for small cap service stocks in the service sector. The service sector has been one of the top performing of the year (just over 30%). And since smaller cap companies are often expected to price in more growth in positive economic cycles, we wanted to narrow down to this this sub-sector.

To find names that might still be undervalued, we took only the names with a P/E below 12. According to Finviz, the average P/E for the service sector is 17.61.

Then we looked at the buying activity of institutional buyers, such as hedge funds. These "smart money" investors often have more access to market data than the average investors, and they tend to purchase thousands if not millions in shares at a time (referred to as "block trades"). It can therefore be assumed that careful consideration was put into their investment decisions, and main street investors would do well to take note.  The list below has only names with significant net purchases from institutions in the current quarter.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by P/E ratio. List Average 1-Year Return:21%. 
1. Crown Media Holdings Inc. (CRWN, Earnings, Analysts, Financials): Through its subsidiary, Crown Media United States, LLC, owns and operates pay television channels in the United States and Puerto Rico. Market cap at $611.46M, most recent closing price at $1.70. P/E at 2.82. Net institutional purchases in the current quarter at 2.2M shares, which represents about 6.34% of the company's float of 34.68M shares.

 

2. Krispy Kreme Doughnuts, Inc. (KKD, Earnings, Analysts, Financials): Operates as a branded retailer and wholesaler of doughnuts, complementary beverages and treats, and packaged sweets. Market cap at $515.45M, most recent closing price at $7.93. P/E at 3.57. Net institutional purchases in the current quarter at 8.6M shares, which represents about 15.21% of the company's float of 56.53M shares.

 

3. US Airways Group, Inc. (LCC, Earnings, Analysts, Financials): Provides air transportation for passengers and cargo. Market cap at $1.78B, most recent closing price at $10.97. P/E at 4.73. Net institutional purchases in the current quarter at 23.0M shares, which represents about 15.52% of the company's float of 148.17M shares.

 

4. Textainer Group Holdings Limited (TGH, Earnings, Analysts, Financials): Engages in the purchase, ownership, management, leasing, and disposal of intermodal containers worldwide. Market cap at $1.58B, most recent closing price at $31.79. P/E at 7.94. Net institutional purchases in the current quarter at 2.4M shares, which represents about 18.91% of the company's float of 12.69M shares.

 

5. SYNNEX Corp. (SNX, Earnings, Analysts, Financials): Provides distribution and business process outsourcing services to resellers, retailers, and original equipment manufacturers (OEMs). Market cap at $1.31B, most recent closing price at $35.10. P/E at 8.1. Net institutional purchases in the current quarter at 10.1M shares, which represents about 38.89% of the company's float of 25.97M shares.

 

6. Scholastic Corporation (SCHL, Earnings, Analysts, Financials): Operates as a children's publishing, education, and media company primarily in the United States. Market cap at $1.05B, most recent closing price at $33.39. P/E at 9.9. Net institutional purchases in the current quarter at 2.2M shares, which represents about 8.23% of the company's float of 26.72M shares.

 

7. TAL International Group, Inc. (TAL, Earnings, Analysts, Financials): Engages in the lease of intermodal containers and chassis. Market cap at $1.19B, most recent closing price at $35.37. P/E at 10.11. Net institutional purchases in the current quarter at 4.4M shares, which represents about 15.04% of the company's float of 29.25M shares.

 

8. Titan Machinery, Inc. (TITN, Earnings, Analysts, Financials): Operates a network of full service agricultural and construction equipment stores in the United States. Market cap at $432.37M, most recent closing price at $20.55. P/E at 10.25. Net institutional purchases in the current quarter at 3.2M shares, which represents about 18.71% of the company's float of 17.10M shares.

 

9. Cumulus Media Inc. (CMLS, Earnings, Analysts, Financials): Engages in the acquisition, operation, and development of commercial radio stations in the United States. Market cap at $448.8M, most recent closing price at $2.69. P/E at 10.96. Net institutional purchases in the current quarter at 16.0M shares, which represents about 26.77% of the company's float of 59.76M shares.

 

10. DeVry, Inc. (DV, Earnings, Analysts, Financials): Provides educational services worldwide. Market cap at $1.5B, most recent closing price at $23.32. P/E at 11.15. Net institutional purchases in the current quarter at 4.0M shares, which represents about 7.01% of the company's float of 57.09M shares.

 

11. Spirit Airlines, Inc. (SAVE, Earnings, Analysts, Financials):  Provides passenger airline service primarily to leisure travelers and travelers visiting friends and relatives. Market cap at $1.25B, most recent closing price at $17.19. P/E at 11.32. Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.6% of the company's float of 48.19M shares.

 

 

Institutional data sourced from Fidelity, all other data sourced from Finviz.

 

Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data…

 

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