Small Cap Distributors: A Lone Ray of Hope for Today

Believe it or not, not every stock is getting trashed today. Quite the contrary actually. A handful of off-the-radar small caps are pushing their way higher. Which ones? The small cap distributors and wholesale stocks, like Watsco Inc. (NYSE: WSO), Houston Wire & Cable Company (NASDAQ: HWCC), and Lawson Products Inc. (NASDAQ: LAWS). The S&P Small Cap Trading Co. & Distributor Index is up 0.72% for the day. It’s not a lot, but it may be a disparity with bigger-picture ramifications. 

The nearby chart indicates that these stocks – as a group – are working on a breakout following several weeks of consolidation. If it can get traction here (or continues getting traction), this relatively nebulous and difficult to describe group could also be one of early 2010’s bigger winners.

Today’s results so far:

• Watsco Inc. (NYSE: WSO), +1.9%
• Houston Wire & Cable Company (NASDAQ: HWCC), +7.5%
• Lawson Products Inc. (NASDAQ: LAWS), +1.5%