Oppenheim Bernhard/DigitalVision via Getty Images The claim that small-cap stocks outperform large-cap stocks has too often been accepted as a factual statement by the investment community. This well-established characteristic of stock returns has even earned itself an enduring place in academic literature, also widely referred to as the “size” factor. The most cited academic literature…
primeimages Looking for high yield income in the small cap sector? The Russell 2000 has suffered in the rising rate era, but, with rates expected to decline sometime in 2024, small caps could return to favor in the market. Royce Value Trust (NYSE:RVT) was the first small-cap closed-end fund, managed since its inception in 1986…
Daniel Grizelj Small-caps have been terrible performers relative to large-caps. Value has been a terrible style performer relative to growth. But the one fact pertaining to all conditions is that they will change. At some point, both small and valuable I believe should lead again. And if you agree, then the Vanguard Russell 2000 Value…
Daniel Grizelj/DigitalVision via Getty Images Healthcare is a sector that has consistently demonstrated strong historical growth and is projected to continue growing. The sector’s ability to innovate and adapt to changing market conditions and regulatory environments makes it a big area to focus on for investors, but like all sectors, has been large-cap momentum dominant….
This article was written by Follow Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report,…
syahrir maulana Large-cap companies are typically more mature, resulting in lower volatility during turbulent market conditions as investors gravitate towards quality and adopt a more risk-averse stance. Over the last year, many investors have gravitated to the Mega-Cap stocks on fears of rising interest rates, inflation concerns, and a potential recession. Historically, March has been…
PM Images Small-caps have been relative underperformers against the S&P 500 for some time, but at showing some signs of life here. Should momentum continue, a small-cap fund focused on growth could be interesting to allocate to. The iShares S&P Small-Cap 600 Growth ETF (NASDAQ:IJT) aims to mirror the performance of the S&P SmallCap 600®…
da-kuk Russell 2000 Growth Stocks May Outperform the S&P 500 In the Growth sector of the Russell 2000, there is a significant composition of information technology-related stocks. This sector has benefited from favorable technical momentum throughout 2023 despite the historical momentum, maintaining satisfactory fundamental values. This follows current consensus indications, which could be confirmed by…
RgStudio/E+ via Getty Images Nerdy, Inc. (NYSE:NRDY) is a small-cap online tutoring learning platform that has been public since 2021 through an overvalued SPAC deal of $1.7 billion. While the company has been around since 2007, it was really thanks to the COVID-19 pandemic that the business looked into the scalability of its solutions. And…
Bulgac/iStock via Getty Images Small-caps have been a train wreck in this cycle, with many of the large passive indices nowhere near looking like they are in a bull market. Much of this of course has to do with the fact that small-cap indices have a lot of zombie companies that operate on razor-thin margins…
icarus666/Moment via Getty Images In my coverage of Arrowhead Pharmaceuticals (ARWR) last February, I noted that my primary problem with ARWR is a lack of focus. Just look at this pipeline: ARWR PIPELINE (ARWR WEBSITE) There are, if I am counting it right, some 16 programs in the clinic, and frankly, this is too much….
Erhan ZENGIN/iStock via Getty Images Small-cap averages like the Russell 2000 have had a hard time showing any compelling momentum, but not all small-cap sectors have had no momentum. It turns out, small-cap Industrials have actually done okay, and that can continue. That’s where the Invesco S&P SmallCap Industrials ETF (NASDAQ:PSCI) comes into play. stockcharts.com…
syahrir maulana One of my main investment themes heading into 2024 is the potential outperformance of small-cap equities as they play ‘catch-up’ to the mega-cap ‘Magnificent 7’ stocks. As long as the economy holds up, I believe there is valuation upside to small-cap equities as the S&P 600 SmallCap Index only trades at a forward…
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gorodenkoff/iStock via Getty Images Investment Thesis Inflation is expected to remain elevated in the near term which makes value stocks attractive. The market is shifting towards small and mid-cap stocks, which can offer appealing returns because of their relatively low valuation. One of the stocks that fits these criteria is Benchmark Electronics (NYSE:BHE), a global…
LaylaBird The Company Park-Ohio Holdings Corp. (NASDAQ:PKOH) is a $313-million market cap company that provides supply chain management outsourcing services, capital equipment, and manufactured components globally. It operates through 3 segments, according to the latest 10-Q filing: Supply Technologies [46% of Q3 FY2023 sales] – offers a Total Supply Management solution, including various support services…
Anna Usova/iStock via Getty Images The Pacer US Small Cap Cash Cows 100 ETF (BATS:CALF) takes a systematic approach to investing in small-cap stocks by focusing on companies generating excess cash flow. The idea here is that “cash cows”, as profitable companies with strong fundamentals, should offer shareholders higher return potential over the long run….
eAlisa If you cannot do great things, do small things in a great way. – Napoleon Hill. Small-cap stocks have been incredibly difficult to invest in passively. With many zombie companies and repeated false momentum signals since 2014 on a relative basis, many traders and investors have given up hope. But there is one approach…
See following page for important disclosures. Before investing in any Longleaf Partners Fund, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. For a current Prospectus and Summary Prospectus, which contain this and other important information, visit Mutual Fund Resources| Longleaf Partners Funds | Southeastern Asset Management–resources. Please read the Prospectus and…
andresr/E+ via Getty Images The Company Rush Enterprises, Inc. (NASDAQ:RUSHA) is a $3.3 billion market cap company that operates as a retailer of commercial vehicles and related services in the United States and Canada. They have a network of commercial vehicle dealerships known as Rush Truck Centers, where they primarily sell vehicles from manufacturers like…
georgeclerk Main Thesis & Background The purpose of this article is to evaluate iShares MSCI United Kingdom Small-Cap ETF (BATS:EWUS) as an investment theme under current market conditions. This is a fund that tracks small-cap U.K. stocks specifically. This differs from the ETFs I usually write about to give my outlook on British companies, which…