17 undervalued small-cap stocks to consider as markets rally

By Philip van Doorn, MarketWatch

• Improved gross margin for the past 12 months from the previous 12-month period.

• Positive net income margins this quarter and a year earlier, with the margin improving from a year earlier.

• Positive net income margin over the past 12 months and previous 12-month period, with the margin improving.

The idea is to isolate companies that are increasing sales, while improving their pricing margins and overall efficiency.

A total of 41 companies met all the criteria. Consensus price-to-earnings ratios are available for 40 of the companies, and only 17 trade at forward price-to-earnings multiples below the index’s forward P/E of 19.8:

Here’s how the 17 companies have increased sales per share over the past 12 months:

Here are the widening 12-month profit margins for the group:

Finally, here’s a summary of analysts’ opinion about these small-cap stocks:

This can be considered a conservative list of steady performers. The stringent margin and price-to-earnings criteria will exclude some companies with rapid sales growth, which means some “winners” may be excluded as well. But these companies can give you peace of mind as you ride out day-to-day volatility in the pursuit of long-term investment profits.

If you are interested in any of these companies, your next step should be to do your own research to understand the businesses and form your own opinion about their prospects for continued success.

/zigman2/quotes/201069053/composite

Add to watchlist CPS

Cooper-Standard Holdings Inc.

US : U.S.: NYSE

$ 40.04

-1.86 -4.44%

Volume: 125,739

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$676.54 million

Rev. per Employee

$111,014

/zigman2/quotes/201427644/composite

Add to watchlist WNC

Wabash National Corp.

US : U.S.: NYSE

$ 17.07

-0.77 -4.32%

Volume: 528,198

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

1.87%

Market Cap

$903.86 million

Rev. per Employee

$336,107

/zigman2/quotes/202777086/composite

Add to watchlist STMP

Stamps.com Inc.

US : U.S.: Nasdaq

$ 209.22

-3.14 -1.48%

Volume: 236,169

Jan. 15, 2021 4:00p

P/E Ratio

25.92

Dividend Yield

N/A

Market Cap

$3.82 billion

Rev. per Employee

$435,529

/zigman2/quotes/200834967/composite

Add to watchlist APOG

Apogee Enterprises Inc.

US : U.S.: Nasdaq

$ 36.79

-0.69 -1.84%

Volume: 428,929

Jan. 15, 2021 4:00p

P/E Ratio

13.92

Dividend Yield

2.17%

Market Cap

$956.82 million

Rev. per Employee

$192,700

/zigman2/quotes/202858913/composite

Add to watchlist LZB

La-Z-Boy Inc.

US : U.S.: NYSE

$ 43.71

-0.96 -2.15%

Volume: 332,174

Jan. 15, 2021 4:00p

P/E Ratio

26.52

Dividend Yield

1.28%

Market Cap

$2.02 billion

Rev. per Employee

$179,367

/zigman2/quotes/207171136/composite

Add to watchlist EVR

Evercore Inc. Cl A

US : U.S.: NYSE

$ 118.77

+0.68 +0.58%

Volume: 322,991

Jan. 15, 2021 4:00p

P/E Ratio

21.34

Dividend Yield

2.05%

Market Cap

$4.83 billion

Rev. per Employee

$1.07M

/zigman2/quotes/204525459/composite

Add to watchlist CATM

Cardtronics PLC Cl A

US : U.S.: Nasdaq

$ 40.71

+0.08 +0.20%

Volume: 1.02M

Jan. 15, 2021 4:00p

P/E Ratio

83.42

Dividend Yield

N/A

Market Cap

$1.81 billion

Rev. per Employee

$679,117

/zigman2/quotes/200545672/composite

Add to watchlist CSGS

CSG Systems International Inc.

US : U.S.: Nasdaq

$ 43.18

-0.42 -0.96%

Volume: 162,738

Jan. 15, 2021 4:00p

P/E Ratio

20.54

Dividend Yield

2.18%

Market Cap

$1.42 billion

Rev. per Employee

$229,733

/zigman2/quotes/204316149/composite

Add to watchlist FIX

Comfort Systems USA Inc.

US : U.S.: NYSE

$ 54.87

-0.37 -0.67%

Volume: 302,075

Jan. 15, 2021 4:00p

P/E Ratio

14.30

Dividend Yield

0.80%

Market Cap

$2.00 billion

Rev. per Employee

$220,493

/zigman2/quotes/207349811/composite

Add to watchlist BGS

B&G Foods Inc.

US : U.S.: NYSE

$ 28.23

+0.21 +0.75%

Volume: 1.80M

Jan. 15, 2021 4:00p

P/E Ratio

13.99

Dividend Yield

6.73%

Market Cap

$1.81 billion

Rev. per Employee

$572,754

/zigman2/quotes/210507022/composite

Add to watchlist SHOO

Steven Madden Ltd.

US : U.S.: Nasdaq

$ 36.03

-0.31 -0.85%

Volume: 570,263

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$3.00 billion

Rev. per Employee

$446,789

/zigman2/quotes/202457114/composite

Add to watchlist MCRI

Monarch Casino & Resort Inc.

US : U.S.: Nasdaq

$ 60.76

-0.85 -1.38%

Volume: 43,880

Jan. 15, 2021 4:00p

P/E Ratio

79.09

Dividend Yield

N/A

Market Cap

$1.11 billion

Rev. per Employee

$108,333

/zigman2/quotes/201350452/composite

Add to watchlist PLCE

Children's Place Inc.

US : U.S.: Nasdaq

$ 57.27

-1.53 -2.60%

Volume: 662,580

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$835.40 million

Rev. per Employee

$108,131

/zigman2/quotes/208926596/composite

Add to watchlist VVI

Viad Corp.

US : U.S.: NYSE

$ 37.15

-1.23 -3.20%

Volume: 103,468

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$758.92 million

Rev. per Employee

$255,866

/zigman2/quotes/208878916/composite

Add to watchlist FOXF

Fox Factory Holding Corp.

US : U.S.: Nasdaq

$ 124.55

-2.82 -2.21%

Volume: 255,284

Jan. 15, 2021 4:00p

P/E Ratio

62.11

Dividend Yield

N/A

Market Cap

$5.20 billion

Rev. per Employee

$288,854

/zigman2/quotes/201069053/composite

Add to watchlist CPS

Cooper-Standard Holdings Inc.

US : U.S.: NYSE

$ 40.04

-1.86 -4.44%

Volume: 125,739

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$676.54 million

Rev. per Employee

$111,014

/zigman2/quotes/201427644/composite

Add to watchlist WNC

Wabash National Corp.

US : U.S.: NYSE

$ 17.07

-0.77 -4.32%

Volume: 528,198

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

1.87%

Market Cap

$903.86 million

Rev. per Employee

$336,107

/zigman2/quotes/202777086/composite

Add to watchlist STMP

Stamps.com Inc.

US : U.S.: Nasdaq

$ 209.22

-3.14 -1.48%

Volume: 236,169

Jan. 15, 2021 4:00p

P/E Ratio

25.92

Dividend Yield

N/A

Market Cap

$3.82 billion

Rev. per Employee

$435,529

/zigman2/quotes/200834967/composite

Add to watchlist APOG

Apogee Enterprises Inc.

US : U.S.: Nasdaq

$ 36.79

-0.69 -1.84%

Volume: 428,929

Jan. 15, 2021 4:00p

P/E Ratio

13.92

Dividend Yield

2.17%

Market Cap

$956.82 million

Rev. per Employee

$192,700

/zigman2/quotes/202858913/composite

Add to watchlist LZB

La-Z-Boy Inc.

US : U.S.: NYSE

$ 43.71

-0.96 -2.15%

Volume: 332,174

Jan. 15, 2021 4:00p

P/E Ratio

26.52

Dividend Yield

1.28%

Market Cap

$2.02 billion

Rev. per Employee

$179,367

/zigman2/quotes/207171136/composite

Add to watchlist EVR

Evercore Inc. Cl A

US : U.S.: NYSE

$ 118.77

+0.68 +0.58%

Volume: 322,991

Jan. 15, 2021 4:00p

P/E Ratio

21.34

Dividend Yield

2.05%

Market Cap

$4.83 billion

Rev. per Employee

$1.07M

/zigman2/quotes/204525459/composite

Add to watchlist CATM

Cardtronics PLC Cl A

US : U.S.: Nasdaq

$ 40.71

+0.08 +0.20%

Volume: 1.02M

Jan. 15, 2021 4:00p

P/E Ratio

83.42

Dividend Yield

N/A

Market Cap

$1.81 billion

Rev. per Employee

$679,117

/zigman2/quotes/200545672/composite

Add to watchlist CSGS

CSG Systems International Inc.

US : U.S.: Nasdaq

$ 43.18

-0.42 -0.96%

Volume: 162,738

Jan. 15, 2021 4:00p

P/E Ratio

20.54

Dividend Yield

2.18%

Market Cap

$1.42 billion

Rev. per Employee

$229,733

/zigman2/quotes/204316149/composite

Add to watchlist FIX

Comfort Systems USA Inc.

US : U.S.: NYSE

$ 54.87

-0.37 -0.67%

Volume: 302,075

Jan. 15, 2021 4:00p

P/E Ratio

14.30

Dividend Yield

0.80%

Market Cap

$2.00 billion

Rev. per Employee

$220,493

/zigman2/quotes/207349811/composite

Add to watchlist BGS

B&G Foods Inc.

US : U.S.: NYSE

$ 28.23

+0.21 +0.75%

Volume: 1.80M

Jan. 15, 2021 4:00p

P/E Ratio

13.99

Dividend Yield

6.73%

Market Cap

$1.81 billion

Rev. per Employee

$572,754

/zigman2/quotes/210507022/composite

Add to watchlist SHOO

Steven Madden Ltd.

US : U.S.: Nasdaq

$ 36.03

-0.31 -0.85%

Volume: 570,263

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$3.00 billion

Rev. per Employee

$446,789

/zigman2/quotes/202457114/composite

Add to watchlist MCRI

Monarch Casino & Resort Inc.

US : U.S.: Nasdaq

$ 60.76

-0.85 -1.38%

Volume: 43,880

Jan. 15, 2021 4:00p

P/E Ratio

79.09

Dividend Yield

N/A

Market Cap

$1.11 billion

Rev. per Employee

$108,333

/zigman2/quotes/201350452/composite

Add to watchlist PLCE

Children's Place Inc.

US : U.S.: Nasdaq

$ 57.27

-1.53 -2.60%

Volume: 662,580

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$835.40 million

Rev. per Employee

$108,131

/zigman2/quotes/208926596/composite

Add to watchlist VVI

Viad Corp.

US : U.S.: NYSE

$ 37.15

-1.23 -3.20%

Volume: 103,468

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$758.92 million

Rev. per Employee

$255,866

/zigman2/quotes/208878916/composite

Add to watchlist FOXF

Fox Factory Holding Corp.

US : U.S.: Nasdaq

$ 124.55

-2.82 -2.21%

Volume: 255,284

Jan. 15, 2021 4:00p

P/E Ratio

62.11

Dividend Yield

N/A

Market Cap

$5.20 billion

Rev. per Employee

$288,854

/zigman2/quotes/201069053/composite

Add to watchlist CPS

Cooper-Standard Holdings Inc.

US : U.S.: NYSE

$ 40.04

-1.86 -4.44%

Volume: 125,739

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$676.54 million

Rev. per Employee

$111,014

/zigman2/quotes/201427644/composite

Add to watchlist WNC

Wabash National Corp.

US : U.S.: NYSE

$ 17.07

-0.77 -4.32%

Volume: 528,198

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

1.87%

Market Cap

$903.86 million

Rev. per Employee

$336,107

/zigman2/quotes/202777086/composite

Add to watchlist STMP

Stamps.com Inc.

US : U.S.: Nasdaq

$ 209.22

-3.14 -1.48%

Volume: 236,169

Jan. 15, 2021 4:00p

P/E Ratio

25.92

Dividend Yield

N/A

Market Cap

$3.82 billion

Rev. per Employee

$435,529

/zigman2/quotes/200834967/composite

Add to watchlist APOG

Apogee Enterprises Inc.

US : U.S.: Nasdaq

$ 36.79

-0.69 -1.84%

Volume: 428,929

Jan. 15, 2021 4:00p

P/E Ratio

13.92

Dividend Yield

2.17%

Market Cap

$956.82 million

Rev. per Employee

$192,700

/zigman2/quotes/202858913/composite

Add to watchlist LZB

La-Z-Boy Inc.

US : U.S.: NYSE

$ 43.71

-0.96 -2.15%

Volume: 332,174

Jan. 15, 2021 4:00p

P/E Ratio

26.52

Dividend Yield

1.28%

Market Cap

$2.02 billion

Rev. per Employee

$179,367

/zigman2/quotes/207171136/composite

Add to watchlist EVR

Evercore Inc. Cl A

US : U.S.: NYSE

$ 118.77

+0.68 +0.58%

Volume: 322,991

Jan. 15, 2021 4:00p

P/E Ratio

21.34

Dividend Yield

2.05%

Market Cap

$4.83 billion

Rev. per Employee

$1.07M

/zigman2/quotes/204525459/composite

Add to watchlist CATM

Cardtronics PLC Cl A

US : U.S.: Nasdaq

$ 40.71

+0.08 +0.20%

Volume: 1.02M

Jan. 15, 2021 4:00p

P/E Ratio

83.42

Dividend Yield

N/A

Market Cap

$1.81 billion

Rev. per Employee

$679,117

/zigman2/quotes/200545672/composite

Add to watchlist CSGS

CSG Systems International Inc.

US : U.S.: Nasdaq

$ 43.18

-0.42 -0.96%

Volume: 162,738

Jan. 15, 2021 4:00p

P/E Ratio

20.54

Dividend Yield

2.18%

Market Cap

$1.42 billion

Rev. per Employee

$229,733

/zigman2/quotes/204316149/composite

Add to watchlist FIX

Comfort Systems USA Inc.

US : U.S.: NYSE

$ 54.87

-0.37 -0.67%

Volume: 302,075

Jan. 15, 2021 4:00p

P/E Ratio

14.30

Dividend Yield

0.80%

Market Cap

$2.00 billion

Rev. per Employee

$220,493

/zigman2/quotes/207349811/composite

Add to watchlist BGS

B&G Foods Inc.

US : U.S.: NYSE

$ 28.23

+0.21 +0.75%

Volume: 1.80M

Jan. 15, 2021 4:00p

P/E Ratio

13.99

Dividend Yield

6.73%

Market Cap

$1.81 billion

Rev. per Employee

$572,754

/zigman2/quotes/210507022/composite

Add to watchlist SHOO

Steven Madden Ltd.

US : U.S.: Nasdaq

$ 36.03

-0.31 -0.85%

Volume: 570,263

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$3.00 billion

Rev. per Employee

$446,789

/zigman2/quotes/202457114/composite

Add to watchlist MCRI

Monarch Casino & Resort Inc.

US : U.S.: Nasdaq

$ 60.76

-0.85 -1.38%

Volume: 43,880

Jan. 15, 2021 4:00p

P/E Ratio

79.09

Dividend Yield

N/A

Market Cap

$1.11 billion

Rev. per Employee

$108,333

/zigman2/quotes/201350452/composite

Add to watchlist PLCE

Children's Place Inc.

US : U.S.: Nasdaq

$ 57.27

-1.53 -2.60%

Volume: 662,580

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$835.40 million

Rev. per Employee

$108,131

/zigman2/quotes/208926596/composite

Add to watchlist VVI

Viad Corp.

US : U.S.: NYSE

$ 37.15

-1.23 -3.20%

Volume: 103,468

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$758.92 million

Rev. per Employee

$255,866

/zigman2/quotes/208878916/composite

Add to watchlist FOXF

Fox Factory Holding Corp.

US : U.S.: Nasdaq

$ 124.55

-2.82 -2.21%

Volume: 255,284

Jan. 15, 2021 4:00p

P/E Ratio

62.11

Dividend Yield

N/A

Market Cap

$5.20 billion

Rev. per Employee

$288,854

/zigman2/quotes/201069053/composite

Add to watchlist CPS

Cooper-Standard Holdings Inc.

US : U.S.: NYSE

$ 40.04

-1.86 -4.44%

Volume: 125,739

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$676.54 million

Rev. per Employee

$111,014

/zigman2/quotes/201427644/composite

Add to watchlist WNC

Wabash National Corp.

US : U.S.: NYSE

$ 17.07

-0.77 -4.32%

Volume: 528,198

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

1.87%

Market Cap

$903.86 million

Rev. per Employee

$336,107

/zigman2/quotes/202777086/composite

Add to watchlist STMP

Stamps.com Inc.

US : U.S.: Nasdaq

$ 209.22

-3.14 -1.48%

Volume: 236,169

Jan. 15, 2021 4:00p

P/E Ratio

25.92

Dividend Yield

N/A

Market Cap

$3.82 billion

Rev. per Employee

$435,529

/zigman2/quotes/200834967/composite

Add to watchlist APOG

Apogee Enterprises Inc.

US : U.S.: Nasdaq

$ 36.79

-0.69 -1.84%

Volume: 428,929

Jan. 15, 2021 4:00p

P/E Ratio

13.92

Dividend Yield

2.17%

Market Cap

$956.82 million

Rev. per Employee

$192,700

/zigman2/quotes/202858913/composite

Add to watchlist LZB

La-Z-Boy Inc.

US : U.S.: NYSE

$ 43.71

-0.96 -2.15%

Volume: 332,174

Jan. 15, 2021 4:00p

P/E Ratio

26.52

Dividend Yield

1.28%

Market Cap

$2.02 billion

Rev. per Employee

$179,367

/zigman2/quotes/207171136/composite

Add to watchlist EVR

Evercore Inc. Cl A

US : U.S.: NYSE

$ 118.77

+0.68 +0.58%

Volume: 322,991

Jan. 15, 2021 4:00p

P/E Ratio

21.34

Dividend Yield

2.05%

Market Cap

$4.83 billion

Rev. per Employee

$1.07M

/zigman2/quotes/204525459/composite

Add to watchlist CATM

Cardtronics PLC Cl A

US : U.S.: Nasdaq

$ 40.71

+0.08 +0.20%

Volume: 1.02M

Jan. 15, 2021 4:00p

P/E Ratio

83.42

Dividend Yield

N/A

Market Cap

$1.81 billion

Rev. per Employee

$679,117

/zigman2/quotes/200545672/composite

Add to watchlist CSGS

CSG Systems International Inc.

US : U.S.: Nasdaq

$ 43.18

-0.42 -0.96%

Volume: 162,738

Jan. 15, 2021 4:00p

P/E Ratio

20.54

Dividend Yield

2.18%

Market Cap

$1.42 billion

Rev. per Employee

$229,733

/zigman2/quotes/204316149/composite

Add to watchlist FIX

Comfort Systems USA Inc.

US : U.S.: NYSE

$ 54.87

-0.37 -0.67%

Volume: 302,075

Jan. 15, 2021 4:00p

P/E Ratio

14.30

Dividend Yield

0.80%

Market Cap

$2.00 billion

Rev. per Employee

$220,493

/zigman2/quotes/207349811/composite

Add to watchlist BGS

B&G Foods Inc.

US : U.S.: NYSE

$ 28.23

+0.21 +0.75%

Volume: 1.80M

Jan. 15, 2021 4:00p

P/E Ratio

13.99

Dividend Yield

6.73%

Market Cap

$1.81 billion

Rev. per Employee

$572,754

/zigman2/quotes/210507022/composite

Add to watchlist SHOO

Steven Madden Ltd.

US : U.S.: Nasdaq

$ 36.03

-0.31 -0.85%

Volume: 570,263

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$3.00 billion

Rev. per Employee

$446,789

/zigman2/quotes/202457114/composite

Add to watchlist MCRI

Monarch Casino & Resort Inc.

US : U.S.: Nasdaq

$ 60.76

-0.85 -1.38%

Volume: 43,880

Jan. 15, 2021 4:00p

P/E Ratio

79.09

Dividend Yield

N/A

Market Cap

$1.11 billion

Rev. per Employee

$108,333

/zigman2/quotes/201350452/composite

Add to watchlist PLCE

Children's Place Inc.

US : U.S.: Nasdaq

$ 57.27

-1.53 -2.60%

Volume: 662,580

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$835.40 million

Rev. per Employee

$108,131

/zigman2/quotes/208926596/composite

Add to watchlist VVI

Viad Corp.

US : U.S.: NYSE

$ 37.15

-1.23 -3.20%

Volume: 103,468

Jan. 15, 2021 4:00p

P/E Ratio

N/A

Dividend Yield

0.00%

Market Cap

$758.92 million

Rev. per Employee

$255,866

/zigman2/quotes/208878916/composite

Add to watchlist FOXF

Fox Factory Holding Corp.

US : U.S.: Nasdaq

$ 124.55

-2.82 -2.21%

Volume: 255,284

Jan. 15, 2021 4:00p

P/E Ratio

62.11

Dividend Yield

N/A

Market Cap

$5.20 billion

Rev. per Employee

$288,854