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The 7 Best Small-Cap Stocks to Buy From Third Avenue

Third Avenue has been busy re-balancing its portfolio of small-cap stocks

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Small-Cap Stocks to Buy: Commerce Bancshares, Inc. (CBSH)

Small-Cap Stocks to Buy: Commerce Bancshares, Inc. (CBSH)Commerce Bancshares, Inc. (NASDAQ:CBSH) is the second-largest holding of the fund. The company is a Midwest-focused super community bank. Based on asset size ($25.3 billion in assets, $21.1 billion in total deposits), it ranks as the 38th largest U.S. bank.

Whereas larger banks may lose sight of fostering a culture of integrity and true collaboration, CBSH places this as a priority and claims to have higher employee engagement than other companies. It has always focused on talent development.

This has been a part of its success, in addition to its focus on modernizing as customer habits change. Since 2009, it has closed 28 branches, reflecting changes in preferences for different banking channels.

2016 was a strong year for Commerce, and I expect those results to continue through the current and following fiscal years. Last year, revenue and EPS were each up 7%, accompanied by loan growth of 8%. Common stock was rewarded these strides with total return for the year of 45%. 2017 is already looking to be better than last. On a YTD basis, net income is up YOY as are ROA, ROE, end period deposits and period end loans.

 As of this writing, Luce Emerson did not hold a position in any of the aforementioned securities.

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