James O'Shaughnessy's Tiny Titans strategy (small-cap value/momentum quantitative approach) had a couple of new rankings after earnings this week. Neither were ranked at the beginning of the month - updated fundamentals reshuffled the rankings.

**\*\*Friedman Industries (FRD) - jumped to #2:\*\***

* Posted record Q2 sales
* PS Ratio: 0.31
* Stock price actually declined after the strong earnings report
* Zacks analysis: [https://finance.yahoo.com/news/friedman-stock-declines-despite-strong-143600344.html](https://finance.yahoo.com/news/friedman-stock-declines-despite-strong-143600344.html)

**\*\*Twin Disc (TWIN) - jumped to #1:\*\***

* Strong price momentum since April 2024
* Ranks 6th for 1-year price appreciation across the screening universe
* PS Ratio: 0.62
* However, quarterly revenue fell YoY ($80M vs. $96.7M) despite mild TTM revenue increase

**\*\*Context on the strategy:\*\***

Based on my backtests, Tiny Titans would have returned \~28.6% CAGR over the past 5 years vs 11.2% for the S&P 500.

It systematically hunts for undervalued small-caps using specific financial ratios and price momentum.

**\*\*Why this is interesting:\*\***

This is a good example of how quantitative strategies process new fundamental data without emotion. The algorithm flagged both immediately after the filings, but TWIN's revenue miss shows why you can't just blindly follow these rankings—you still need to evaluate.

Curious what others think about these picks. FRD seems genuinely undervalued with the low PS ratio and strong earnings. TWIN's momentum is strong but that revenue miss is concerning.

Two small-caps jumped into O'Shaughnessy's Tiny Titans top 3 after SEC filings—neither were ranked Nov. 1.