Against the backdrop of the U.S.-China trade war, small cap stocks might appear to be a safe haven. After all, small cap stocks tend to be more insulated from such pressures…right? Not necessarily, according to Bank of America Merrill Lynch’s small cap expert, who is warning that “the widely held perception [small caps are] insulated from the effects is ill-conceived”. Perhaps even more concerning, she has “spott[ed] an ominous characteristic in the group that’s historically linked to economic downturns.” For more – including some possible positive exceptions within the small-cap space – CLICK HERE.
“After U.S. stocks last year posted the worst performance since 2008, you might be skeptical of companies favored by Wall Street analysts, who seem to be perennially optimistic,” acknowledges the author of today’s article. Still, it may be worth noting which stocks are currently favored by analysts for the year ahead – and as such the author proceeds to identify the 20 stocks from each of the three main S&P indexes (large-cap, mid-cap and small-cap) “covered by at least five analysts with 75% or more ‘buy’ or equivalent ratings that have the highest 12-month upside potential implied by consensus price targets.” For more, CLICK HERE.
Low-priced stocks offer investors – especially more aggressive traders – the opportunity to not only make a decent profit in the event of even relatively small price moves, but also to buy more shares than they would be able to of large-cap stocks. As such, today’s article highlights five stocks trading under $10 that the authors believe “could provide investors with some solid upside potential.” For these five stocks – including an “off-the-radar small cap [that] has been hammered this fall” – CLICK HERE.
History suggests that stocks are expected to rise over the coming weeks – with small cap stocks expected to outperform. The author of today’s article notes that “The outperformance of the small-caps seems to hold true this year given that these pint-sized stocks are well insulated from international headwinds, which we are currently seeing. These are considered safe and better plays if any political issue or economic turmoil creeps into the picture.” For five small-cap ETFs and five small-cap stocks expected to outperform this holiday season, CLICK HERE.
Whether it’s to be attributed to their greater insulation from ongoing trade tensions, their greater benefit from last year’s tax cuts, a combination of those factors and/or other factors, small-cap stocks are currently in fashion – and today’s article highlights three small-cap stocks that appear to be undervalued may be worthy of consideration. For these three “small caps on sale” – an entertainment technology company, a developer of human interface hardware and software, and a producer of ready-mixed concrete – CLICK HERE.
In regards to blue chip companies, the author of today’s article points out that, while “These sound like the kind of companies small investors should consider owning…there is a problem with them from the perspective of the small investor. That problem is their high cost per share.” Fortunately, the author proceeds to identify a solution to this problem – the first step of which is to search for large cap stocks with low PEG ratios. For three such stocks the author identifies – and the second step of the solution – CLICK HERE.
Small-cap stocks offer investors the potential for large gains. However, small-cap stocks often do not have lengthy track records for investors to review in assessing their future prospects. As such, the author of today’s article screened for cheap stocks (trading under $2) which have a past – specifically, a history of sales and earnings growth. For six stocks that this screen yielded – any of which the author believes could double from their current price – CLICK HERE.
Small-cap stocks – which were expected to benefit bigly from the Trump administration’s focus on tax reform and cutting regulation – have actually been underperforming large-caps as the so-called ‘Trump trade’ has faded. Still, analysts at RBC Capital Markets see big potential in a number of small-caps, as identified in their recently published “U.S. Equity Small Cap Focus List”. To see which 14 small-caps – with implied 12-month upside of up to 99% – are the analysts’ favorite plays, CLICK HERE.
The author of today’s article notes that, while large-cap stocks have been enjoying the current rally, some analysts believe that – as interest rates rise and market volatility potentially increases as a result of political turmoil in Washington – the next leg of the rally may be led by small-caps. So, for investors who want to enhance their portfolios’ small-cap exposure, where should they look? Perhaps to the holdings of this small-cap focused mutual fund which has shown impressive performance while mitigating the risks associated with small-cap stocks. To read more about this fund – and for three of its key holdings – CLICK HERE.
The automobile industry is undergoing a dramatic transformation – not just in the types of vehicles being built, but also in the way vehicles are being purchased, with the latter having an ever-increasing online component. How can investors go about trying to profit from this shift in the way people buy their cars? Today’s article highlights one small-cap play to consider – “one of the nation’s largest auto pricing and information companies.” To find out what this stock – which is up 174% in the last year and which the author believes still has room to run – is, CLICK HERE.