Small cap stocks were some of the best performers of 2016.

In fact, since January 2016, the Russell 2000 gained 23% on the year, as the Dow picked up 17%.  The NASDAQ was up 11% on the year.  The S&P 500 up 13%.

Fund managers expect the small cap rally to extend well into the New Year, as well on Donald Trump policies. 

Nowadays, as small caps gain further attention, the trick to succeeding is to find ones with growing earnings in a market full of disasters.

Cemtrex (CETX) is a perfect example.

Best Stocks of 2016Left for dead at $2 a share, the company – which provides electronic manufacturing services of printed circuit board assemblies, provides instruments for industrial processes, and provides industrial environmental control systems – was ignored.

But for the wrong reasons…

Revenue may have slipped slightly, but net income had nearly doubled.

So, in the April 2016 issue of The Cheap Investor, we recommended the stock at $2. 

As of December 30, 2016, it hit a high of $7.48 for a potential gain of 274% on two things.  One, it could continue running on Trump positives. 

In fact, according to CEO and Chairman Saagar Govil, “we are excited about the domestic infrastructure spending agenda of the new Trump administration which will create tremendous opportunities for many of our business segments and hence combined with our strategic M&A program, we are extremely bullish about future prospects."

And two, the company just posted a 65% increase in revenue to $93.7 million, as compared to $56.887 million year over year.  Net income even soared 76% to $4.994 million or 59 cents a share from $2.838 million, or 41 cents a share year over year.

EBITDA soared 120% to $9.053 million from $4.107 million year over year, as well.

Again, it just proves that the right small cap stocks can provide the greatest rewards… with just a bit of good research.

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