Search Results for: small cap

U.S. Valuations: PE10 Ratio The PE10 ratio points to U.S. mid- and small-cap stocks as a valuation sweet spot and potentially poised for better future returns than large caps. Image: Topdown Charts

S&P 500, Russell 2000, Stoxx 600 and EM Equities – 12-Month Forward EPS Consensus Estimates Market leadership is widening. U.S. small-caps are catching up fast as EPS growth fires up in both the S&P 500 and Russell 2000—a clear sign the rally is broadening beyond the tech giants. Image: Societe Generale Cross Asset Research

Russell 2000 Net Futures Contracts Asset managers and leveraged funds hold large net short positions in Russell 2000 futures despite recent small-cap gains, creating conditions for potential short covering that could trigger further upward momentum in small-cap futures. Image: Deutsche Bank Asset Allocation

Global Equity Valuations The market environment favors global ex-U.S., small-cap, and value stocks for their cheap valuations and growth potential, while U.S., large-cap, and growth stocks face valuation headwinds and higher downside risk. Image: Topdown Charts

Number of Unique Names in Top 10 Ranking Since 2014 to Date Over the past decade, less than 20 companies have consistently ranked among the top 10 by market capitalization in both the U.S. and China. This reflects the dominance of a small group of large firms within each market. Image: Goldman Sachs Global Investment…

ISABELNET Cartoon of the Day If the U.S. trade deficit is a national emergency, then the small-cap and Nasdaq bear markets need life support! Happy “Hump” Day, Everyone! 🐫🐪😎

Valuation – Russell 2000 vs. S&P 500 The current undervaluation of U.S. small-caps relative to the S&P 500 presents an attractive investment opportunity for those looking to diversify their portfolios and potentially capture higher returns in the coming years. Image: Fundstrat Global Advisors, LLC

S&P 500 Fwd. Earnings Growth and Russell 2000 Fwd. Earnings Growth The recovery in EPS growth has been driven by a small number of large-cap companies, which may indicate a late-cycle extension in the economic cycle. Image: Morgan Stanley Research

Valuation – Relative Forward P/E: Russell 2000 vs. Russell 1000 Small-caps may be an attractive option for long-term investors looking to diversify their investment portfolios, as they offer relatively cheaper valuations compared to large-caps. Image: BofA US Equity & Quant Strategy

Performance – Ratio of Russell 2000 Index to Nasdaq Composite Small-cap stocks are currently at a record low relative to the Nasdaq Composite. Factors that could drive small-cap stocks to outperform include a rise in M&A and IPOs, robust earnings growth, and changes in interest rates. Image: BofA Global Investment Strategy

Performance of Different U.S. Fama French Factor Returns U.S. small-cap value has been the best bet over the past 25 years. However, small-cap value stocks are typically more volatile in the short term, making a long-term investment strategy necessary. Image: BofA Research Investment Committee