FleetMatics Group PLC (NYSE:FLTX) provides fleet management solutions to its customers, enabling them to locate vehicles, monitor fuel usage, and track mileage amongst other things. The company is quite small in nature, with a market cap of less than $750mm. FLTX priced its IPO at $17 last October and is currently trading at $23.74, bestowing those who got in with a 40% gain in less than six months. Fleetmatics is off to a strong start as a public company, delivering revenue beats in both quarterly earnings reports thus far. Analyst firms ranging from RBC Capital to BofA/Merrill have all given the stock a ringing endorsement with Buy, Overweight, or Outperform ratings.
Medical device company Cyberonics, Inc. (NASDAQ:CYBX) is also a favorite amongst sell-side research firms, receiving positive mention from Lazard Capital and Sidoti since the start of this year. CYBX surprised analysts last month with an earnings beat that was 23% greater than expectations, continuing the company’s consistently positive announcements. The stock has more than doubled the gain of the S&P 500 looking back a year, even taking into an account a 7.6% drop in January after being accused of encouraging its sales staff to have surgeons prematurely schedule battery replacement surgeries. D. E. Shaw bumped up its position by more than half in Q4 2012 (check out the fund’s portfolio here).
Our favorite pick in this group is Realogy Holdings Corp (NYSE:RLGY) which has seen extremely high hedge fund interest for a stock this size. We aren’t sure what Facebook Inc (NASDAQ:FB) can do in the short-term but we think it is more likely to deliver strong capital gains over the long-term. The most interesting stock pick in this group is, though, Fleetmatics. The only other fund with an FLTX position is Driehaus Capital. We would stay away from it.
Disclosure: I do not own shares of any stocks mentioned in this article.