CNBC Stock Blog

3 Strong Small Cap Stocks: Market Pro

Peter Sidoti, founder and president of Sidoti & Company, is bullish on "the outlook for small cap stocks across the board." He shared his favorite stock picks.

Sidoti’s Recommendations:

Investing in Small Caps

Rent-a-Center—"They’ll benefit no matter how the economy is doing,” Sidoti told CNBC. “They trade at about 8 times earnings—as business improves, you’re going to see much better earnings than even people expect right now.”

Mobile Mini—“They take shipping containers and make them into portable storage containers,” he said of the firm. “It’s a great cash-flow business…when business is slow, it generates a ton of cash flow and when business is good, its earnings grow through the roof.”

Stifel Financial—“When revenue starts to improve you’ll see a lot of it come down to the bottom line,” said Sidoti. “They’ve done a good job hiring new associates.”

  • Watch Sidoti's Previous Appearance on CNBC (Dec. 28, 2009)

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Do not own shares of RCII, MINI, or SF.