Small caps within the iShares Russell 2000 small caps ETF have been outperforming the S&P 500 and Nasdaq 100. Among these small caps are four stocks with low price-earnings ratios and good dividend payouts. These stocks also have low debt-to-equity ratios, decent earnings growth over the past few years, and a price that is trending upwards on two moving average indicators.
One of the companies mentioned is Buckle (NYSE: BKE), a clothing company that has been in business since 1948 and operates over 100 stores in 18 states. With a market capitalization of $2.08 billion, Buckle has a price-earnings ratio of 9.66 and pays a 3.41% dividend. Despite a 15% decrease in earnings this year, the past 5 years have seen an EPS growth of 17%. The stock is trading above its up trending 50-day and 200-day moving averages.
Hanmi Financial (NASDAQ: HAFC) is another featured company, established in 1982 as the first Korean American bank with 35 branches across the country. With a market cap of $613 million, Hanmi trades with a price-earnings ratio of 9.15 and pays a 4.95% dividend. Although earnings have decreased by 24% this year, they have grown by 7.88% over the past 5 years. The stock is trading above its up trending 200-day moving average.
Village Supermarkets (NASDAQ: VLGEA) is a natural foods grocery operating in several states with a market capitalization of $401 million. The stock has a price-earnings ratio of 8.73 and a dividend yield of 3.32%. Earnings growth over the past five years has been 14.24%. The stock is trading above its up trending moving averages.
Weyco Group (NASDAQ: WEYS), a footwear company offering various brands, has a market cap of $319 million and a price-earnings ratio of 10.92. The stock trades at 1.29 times book value and has a debt-to-equity ratio of .05. With an average daily volume of 12,380 shares, Weyco pays a dividend of 3.10%. The stock is a component of the Russell 2000 small caps ETF.
Overall, these small cap stocks offer investors the combination of low price-earnings ratios, good dividend payouts, and solid earnings growth over the past few years. Despite some declines in earnings this year, the companies have shown strong performance in the past. With a focus on small caps, investors may find opportunities for growth and income in these types of stocks.
