Reported 1 day ago
After a strong quarter, small-cap stocks in the Russell 2000 index are beginning to show real earnings growth, marking their best performance since 2021. Analysts have revised earnings forecasts upward, particularly for companies like Marcus Corporation, contributing to a 12.4% gain in small-cap stocks over the last three months. The appeal of small-caps is heightened as they trade at lower price-to-earnings ratios compared to large-cap stocks and benefit from recent Federal Reserve rate cuts. This shift could signal the start of a new cycle of outperformance for small-cap stocks.
Source: YAHOO