The following is exclusive content from The Correct Call provided to readers of SelfInvestors.com.  Enjoy!

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Every week The Correct Call analyzes more than 500 sector, index and ETF charts looking for emerging up or down trends. Once we have a feel for the big picture, we can then look under the hood to discover the stocks that have the engine purring or squealing.

Small cap stocks look like they could outperform in the weeks and months ahead.

CTS Corporation (CTS) is a small cap stock we believe could provide investors with a eye-catching 20%+ return in the next 3-to-6 months.

CTS Corporation designs, manufactures and sells a broad line of electronic components and sensors and is a provider of electronics manufacturing solutions to the automotive, computer, communications markets, medical, defense & aerospace, and industrial markets

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On April 29th, CTS reported earnings that exceeded Wall Street’s expectations by 20% and all 3 analysts who cover CTS have raised their estimates for the remainder of 08 and for all of 2009. Yet the stock price remains unchanged. The Correct Call sees this as an invitation to buy a growing company for a reasonable price.

CTS trades at .52 its sales to earnings; meaning for every dollar CTS does in sales, their stock is worth 52 cents. The average company in their industry trades at 1.46 times sales.
Based on the 2008 full year estimate of 81 cents per share, CTS is trading at a forward P/E of 11.56. At the industry average P/E of a hair under 16; CTS’ share price would approach $13.

Apparently this bargain has been recognized by the CTS’ management. Three insiders purchased shares in the open market within the last 2 weeks between $10.46 and $10.70 per share. The Correct Call loves insider buying as management rarely lies with their wallets.

CTS’ chart leads us to believe the next move should be up.

Suggested Stop: $10.22