Investing in Undervalued Gems

Two More Defensive Small Caps to Boost Your Portfolio

Chicago, IL - February 22, 2023 - The current market environment is characterized by high volatility and uncertainty, making it essential for investors to focus on defensive small-cap stocks that can provide a stable return. Zacks' proprietary stock screener has identified two more defensive small caps that can help you navigate this challenging market and boost your portfolio.

The first defensive small cap is Westinghouse Air Brake Technologies (WAB), a leading provider of railcar components and services. With a strong track record of profitability and a history of dividend growth, WAB is an attractive option for income-seeking investors. The company's railcar manufacturing business has been performing well, driven by strong demand for tank cars and other specialized railcars. Additionally, WAB's aftermarket services business has been growing steadily, providing a stable source of revenue.

The second defensive small cap is SPX FLOW (FLOW), a leading provider of flow control and processing solutions for the food and beverage, oil and gas, and power generation industries. FLOW has a history of consistent profitability and has been expanding its product offerings to capitalize on growing demand for its solutions. The company's strong balance sheet and solid cash flow generation also make it an attractive option for value investors.

Both WAB and FLOW have strong financials, with low debt levels and a history of generating positive cash flow. They also have a track record of paying consistent dividends, making them attractive options for income-seeking investors.

For investors looking to add stability and income to their portfolios, WAB and FLOW are two defensive small caps that are worth considering. With their strong financials, consistent dividend payments, and growth potential, they can provide a solid foundation for a diversified portfolio.