Investing

Deutsche Bank Shows Top Quantitative Small Cap Stock Screen

Friday’s nonfarm payroll report is hopefully the beginning of some consistent hiring by American companies. Typically, small cap stocks derive some of the biggest benefit from an improving domestic economy, as their businesses are predominantly focused on the United States. It is important for investors to consider carving out a portion of their portfolio for solid small cap names.

The Deutsche Bank A.G. (NYSE: DB) small cap research team is using quantitative analysis to find the very best small cap stocks to buy now. Quantitative screening techniques are particularly fruitful in the small cap world. With so many stocks to choose from, and so little time to analyze them all, quant tools and programs can help point small cap investors toward the types of stocks that warrant further analysis.

Here are the top small cap stocks to buy from Deutsche Bank:

Lions Gate Entertainment Corp. (NYSE: LGF) is a familiar name to investors. The company has made some of the most popular motion pictures in recent years, and the stock is near a 52-week high. The Thomson/First Call estimate is $26.50.

Cash America International Inc. (NYSE: CSH) makes the list. With almost 1,000 locations around the country offering specialty consumer financial services to individuals through retail services locations and e-commerce activities, business has been strong. The consensus price target is $51.

Sanderson Farms Inc. (NASDAQ: SAFM) is a familiar name for anybody who has ever cooked a meal with chicken. With the company’s solid earnings and industry leading profit margins, the stock has been on a tear. The consensus target is $59, which is below current trading levels.

Armour Residential REIT Inc. (NYSE: ARR) may be a great name for aggressive income investors. Producing high income by managing leveraged mortgage debt portfolios, this real estate investment trust is considered a sector leader. The consensus price target is $7. The stock pays a 13.20% yield.

PDL BioPharna Inc (NASDAQ: PDLI) is a biotech name to buy at Deutsche Bank. Trading at 5.41 times earnings and paying a big dividend makes it an outstanding total return candidate. The consensus price target is $6.50. The company pay investors a 7.70% dividend.

Alliance One International Inc. (NYSE: AOI) provides cigarette manufacturers with the tobacco to make their products. The consensus price target is $6. This could be a top stock to buy as the price target would represent a 73% gain.

Fifth Street Finance Corp. (NASDAQ: FSC) may be another ideal name for aggressive income investors. This is one of the top business development companies. The consensus price objective is $11.50. Investors receive a 10.47% dividend.

Glimcher Realty Trust (NYSE: GRT) owns and operates a portfolio of retail properties, including regional and super-regional malls, as well as community shopping centers. The consensus target for the stock is $12.75. Investors receive a 3.10% dividend.

Hawaiian Telecom Holdco Inc. (NASDAQ: HCOM) may generate the aloha spirit with investors. It provides telecommunication services to residents of Hawaii, and the stock trades at a miniscule 2.44 times earnings. The consensus price target is $27.

With many of the blue chip stocks trading at all-time highs, investors may want to review their portfolios for potential names to take profit in. Investing some of those profits in small cap stocks might be an avenue for even greater profits down the road.

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