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The Best Investing Ideas in Small Caps

Chasing highfliers is a sucker's game. But tracking monthly trends across the market can lead to great investment ideas, as well as shedding new light on stocks you already have in your portfolio.

Let's take a look at the biggest movers in Small Caps. These stocks -- which include companies from the consumer discretionary, energy, financials, materials, and telecommunication sectors -- have clocked some of the biggest gains during the past month.

Small-Cap Market Movers

Company

Industry

CAPS Rating
 (out of 5)

30-Day Return

Market Cap
(Millions)

Price / Earnings

Maxcom Telecom (NYSE: MXT  )

Diversified telecommunication services

***

65.7%

$643

NA

China Agritech Inc. (Nasdaq: CAGC  )

Chemicals

***

49.6%

$231

13.9

Newpark Resources, Inc. (NYSE: NR  )

Energy equipment and services

*****

36.8%

$369

15.8

Financial Federal Corp. (NYSE: FIF  )

Diversified financial services

*

 33.5%

$728

16.1

NutriSystem, Inc. (Nasdaq: NTRI  )

Internet and catalog retail

***

32.1%

$970

38.5

Those returns are certainly eye-catching. But do these highfliers have staying power?

Let's see what The Motley Fool CAPS community (more than 145,000 investors strong) has to say about the best plays in the Small Cap market.

And the next big winners are ...
The following Small Cap stocks are of similar size in comparable industries to the ones in the previous chart. However, these are companies CAPS members think have more promising future returns than the ones already making waves.

 CAPS Community Small-Cap Favorites

Company

Industry

CAPS Rating
(out of 5)

Market Cap
(Millions)

Price / Earnings

Fools Saying Outperform

PAETEC Holding Corp. (Nasdaq: PAET  ) (Alternative for MXT)

Diversified telecommunication services

*****

$577

15.5

82 of 87

LSB Industries, Inc. (Alternative for CAGC)

Chemicals

*****

$298

11.8

567 of 582

PICO Holdings, Inc. (Alternative for FIF)

Diversified financial services

*****

$733

47.0

290 of 294

Ticketmaster

(Nasdaq: TKTM  ) (Alternative for NTRI)

Internet and catalog retail

****

$682

NA

74 of 82

PHI (Alternative for NR)

Energy equipment and services

*****

$276

18.0

34 of 35

Of course, some of today's winners might continue to rack up outsize returns. But isn't it better to snag tomorrow's winners before they start running up?

Find out if your hot stocks still have sizzle
How do your stocks compare to the CAPS community's best investment ideas? Find out in an instant by plugging your tickers into the completely free Motley Fool Stocks 360 program. You'll also get a thorough analysis of how your investments are faring against multiple peer benchmarks. Find out whether you should trade in, trade up, or sit tight by getting a quick 360-degree diagnostic right now.

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Related Tickers

5/25/2012 4:02 PM
NR $5.80 Down -0.06 -1.02%
Newpark Resources,… CAPS Rating: *****
NTRI $10.81 Up +0.02 +0.19%
NutriSystem, Inc. CAPS Rating: ***
PAET.DL $0.00 Down +0.00 +0.00%
PAETEC Holding Cor… CAPS Rating: ****
CAGC.PK $0.78 Down -0.02 -2.50%
China Agritech Inc… CAPS Rating: **
FIF $20.23 Up +0.14 +0.70%
Financial Federal… CAPS Rating: *
MXT $1.18 Down +0.00 +0.00%
Maxcom Telecom CAPS Rating: No stars

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