BJ’s Restaurants, Inc. (BJRI) , iRobot Corporation (IRBT): Check Out These 2 Small-Cap Stocks Before They Rebound

Page 2 of 2

Automating your profits

Next, I’ve made no mystery of my fondness for robotics-specialist iRobot Corporation (NASDAQ:IRBT), and as a shareholder myself, I’ve already stated that a long-term decline in the company’s crucial consumer segment would be one of only a few probable events that could convince me to sell.

The thing is, that didn’t happen when the company reported earnings a few weeks ago. In fact, many were left puzzled when the stock fell 13% that day, even as iRobot Corporation (NASDAQ:IRBT)’s numbers beat expectations on both revenue and earnings per share.

As I wrote at the time, however, the market was hoping for an even bigger beat given iRobot Corporation (NASDAQ:IRBT)’s previous four-quarter streak of crushing estimates, and the company’s guidance left investors wanting even more.

That’s why I think the end result is a perfect buying opportunity in iRobot Corporation (NASDAQ:IRBT) for long-term investors who’ve been waiting for their chance to get in.

Then again, while iRobot has been busy scaling back its unpredictable defense segment, the government has still been on a spending spree in other industries.

The article Check Out These 2 Small-Cap Stocks Before They Rebound originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of MAKO Surgical and iRobot. The Motley Fool recommends BJ’s Restaurants, Chipotle Mexican Grill, iRobot, LeapFrog Enterprises (NYSE:LF), and MAKO Surgical. The Motley Fool owns shares of BJ’s Restaurants, Chipotle Mexican Grill, InvenSense, and LeapFrog Enterprises. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2