The small caps recently are outperforming the S&P 500 and the Nasdaq 100 if you measure using the iShares Russell 2000 small caps ETF. That’s the standard among investment professionals who keep track of the differences between the big cap, mid-cap and small-cap universes.
Here are 4 stocks from among that ETF’s components with low price-earnings ratios and which pay good dividends. I included in the screen for these a low debt-to-equity ratio, decent earnings over the past few years and a price that is up trending on at least two moving average indicators.
4 Low P/E Small Caps Paying Dividends.
Buckle (NYSE: BKE) is a clothing company, formerly known as The Brass Buckle, in business since 1948. Operating more than 100 stores in 18 states from headquarters in Kearney, Nebraska, the retail firm went public on the Nasdaq in 1994 and moved to the New York Stock Exchange in 1997.
Market capitalization is $2.08 billion. The stock is a Russell 2000 component and trades with a price-earnings ratio of 9.66. This year’s earnings are off by 15% — the past 5 years EPS growth is 17%. Average daily volume is a relatively light 353,000 shares. Buckle pays a 3.41% dividend.
On the weekly price chart below, the price trades above up trending 50-day and 200-day moving averages:
Hanmi Financial (NASDAQ: HAFC) is a Los Angeles-based company established in 1982 by Korean immigrants as the first Korean American bank. Hanmi now has 35 branches across the country including those in California, Colorado, Texas, Illinois, New York, New Jersey, Virginia and Georgia.
The market cap comes to $613 million. The stock is a component of the iShares Russell 2000 small caps ETF and trades with a price-earnings ratio of 9.15 at a 14% discount from its book value. Earnings this year are down by 24% and up over the past 5 years by 7.88%. Hanmi pays a 4.95% dividend.
Here’s the weekly price chart, showing how the stock is trading above its up trending 200-day moving average:
Village Supermarkets (NASDAQ: VLGEA) is a natural foods grocery now operating 30 ShopRite stores in New York, New Jersey, Pennsylvania and Maryland. The company also runs four Gourmet Garage markets, and four Fairway Markets stores in New York City.
Market capitalization is $401 million. The price-earnings ratio is 8.73 and the stock trades at an eight percent discount to its book value. Earnings growth over the past five years is up by 14.24%. Average daily volume is a light 28,000 shares. Village Supermarkets pays a dividend of 3.32%.
The weekly price chart is here:
Weyco Group (NASDAQ: WEYS) is a footwear company offering brands like Florsheim, Stacy Adams and Nunn Bush. Based in Glendale, Wisconsin, the shoes are sold in stores worldwide and Weyco operates its own Florsheim concept stores in the United States and internationally.
Market cap is $319 million. The price-earnings ratio is 10.92 and the stock trades at 1.29 times book. The debt-to-equity ratio is .05. Average daily volume is a mere 12,380 shares. A component of the Russell 2000 small caps ETF, Weyco is paying a 3.10% dividend.
The weekly price chart looks like this:
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.
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