10 small-caps that can go the distance

These stocks have the best chances of gaining as we head into next year.

By TheStreet Staff Dec 7, 2009 12:15PM

TheStreet.comBy Jake Lynch, TheStreet.com

 

Small-company stocks fell out of favor in the fall. The Russell 2000, a barometer for small-caps, has risen 5% during the past three months, trailing the Dow Jones Industrial Average and S&P 500 Index of large-company shares. There are still attractive small companies, though investors have to look harder. Here are 10 under-the-radar stocks that offer promising returns for 2010.

 

Quest Software (QSFT) has risen 5% since our Oct. 2 article. The software designer stands to benefit from a rebound in technology spending.

 

Carbo Ceramics (CRR) has risen 7% since our Oct. 23 story. An increase in drilling for natural gas will help the maker of proppants, conduit-like equipment used in the extraction of natural gas.

 

Eldorado Gold (EGO) has climbed only 1% since our Nov. 13 report. Eldorado Gold is one of the lowest-cost gold miners, with margins that trump larger peers.

 

Informatica (INFA) has rallied 29% since our July 29 article. Fatter technology budgets will prompt orders for data-integration services.

 

FactSet Research Systems (FDS) has advanced 9% since our Oct. 12 story. Investment managers are boosting securities information and analytics, buoying the software designer.

 

Nu Skin Enterprises (NUS) was endorsed by us on Friday. People with money are buying its high-end skin products and weight-loss supplements.

 

Buffalo Wild Wings (BWLD) has more than doubled since our original "buy" recommendation on March 16. The restaurant owner can attract customers with its economical food in boom and bust periods.

 

Cott (COT) has surged 44% since our Aug. 4 article. The generic soda maker's stock is still cheaper than those of brand-name peers.

 

Sykes Enterprises (SYKE) has rallied 29% since our July 30 review. The customer support specialist will continue to seal contracts as large-companies outsource to cut costs.

 

Medifast (MED) has already climbed 15% since our recommendation on Tuesday. The seller of weight-loss products is expected by analysts to increase sales faster than competitors in the fourth quarter.

 

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