Results for: Small-Cap Stocks

Following President Trump’s re-election, renowned market analyst Tom Lee of Fundstrat highlighted promising investment opportunities in cyclical and small-cap stocks, a view echoed by fellow analyst Ryan Detrick. Lee anticipates strong performance from industrial and financial sectors due to deregulation and potential cost of money decline, while emphasizing the attractiveness of small-cap companies due to their historical underperformance and valuation advantage. Recent market trends seem to validate these insights, with financial and industrial sectors experiencing significant gains.

Wall Street strategist Tom Lee forecasts a significant surge in small-cap stocks under President Trump’s second term, driven by anticipated economic policies, relaxed regulations, and tax cuts. He believes these stocks could double in value over the next two years, outperforming the broader market.

After a decade of dominance by large-cap US stocks, experts are predicting a shift towards small-cap equities, fueled by a healthy labor market and anticipated rate cuts. While the potential for high returns exists, the volatility of this sector shouldn’t be overlooked.

While the broader market has experienced ups and downs, small-cap stocks have shown resilience in 2024. With the Federal Reserve signaling potential rate cuts, these stocks are positioned for growth in 2025. This article highlights three small-cap stocks that are attracting attention, showcasing their strong fundamentals and potential for outperforming the market in the coming year.

The space industry is booming, attracting investment from both established giants and nimble start-ups. While the market is filled with risks, three small-cap aerospace and defense stocks stand out as potential high-growth opportunities. Rocket Lab, Intuitive Machines, and Redwire are all making significant strides in space exploration and infrastructure, offering investors a chance to capitalize on the expanding space economy.

Small-cap stocks, often sensitive to interest rate changes, are showing signs of a potential rebound after the Federal Reserve’s recent rate cuts. With borrowing costs declining and a historically strong period for small-cap performance approaching, the IWM ETF, tracking 2,000 small-cap U.S. stocks, has outperformed the broader market in recent weeks. This article explores the reasons behind this upward trend and outlines two popular investment options for capitalizing on the potential growth of small-cap stocks.

Small-cap stocks are experiencing a surge in anticipation of the Federal Reserve’s anticipated interest rate cut. This rally is driven by the potential for lower borrowing costs, which could benefit smaller companies, especially those with debt. However, the economic outlook and earnings performance could impact this trend.

Despite their recent attractiveness, small-cap stocks face a challenging environment in 2024, according to Russell Investments Chief Investment Strategist Paul Eitelman. He highlights several factors that could hinder their performance, including narrow market leadership dominated by tech giants, potential economic downturn, and persistent inflation.

Lazard’s global head of small-cap equity, Sean Gallagher, predicts a significant rally in small-cap stocks, fueled by declining interest rates and attractive valuations. He expects the iShares Russell 2000 ETF (IWM) to surge between 30% and 50% in the next year, closing the gap with large-cap counterparts. Gallagher’s bullish outlook is supported by the substantial valuation gap between small and large caps, with small caps appearing exceptionally cheap after removing non-earners from the index.

Amidst economic uncertainty, Russell Investments’ chief investment strategist, Paul Eitelman, reveals specific small-cap sectors primed for growth. He advises investors to focus on stock selection over aggressive sector rotation, highlighting the potential of banks, technology, and select indebted companies in a softening interest rate environment.