2012 Return: +279.5%
Russell 3000 Rank: 10
Micro-cap stock Patrick Industries (NASDAQ:PATK, $170 million market cap) has provided building products and materials to America’s manufactured housing and RV industries since 1959. Going public all the way back in 1968, PATK has never grown beyond its small niche market — until now.
Patrick’s stock gained nearly 280% in 2012 thanks to record-setting revenues and earnings. The company reports Q4 and full-year 2012 results Feb. 19, and I expect them to be good, too. PATK’s $13 million in operating income in 2011 was the best in its 53-year history. In 2012, operating income through nine months is $22.4 million — 72% better than the whole of 2011.
This next year should decide whether Patrick Industries can move beyond its micro-cap status. With both the recreational vehicle and housing markets on the mend, I see no reason why it can’t repeat as a top performer in 2013 and reach $500 million in market capitalization by the end of 2014.
As a note, though, PATK trades fewer than 100,000 shares a day, so make sure to use limit orders and stop-losses when trading.