PLMR - Top 10 Small-Cap Stocks (SA Quant)

2024-03-12 05:00:00 ET

Summary

• The prevailing market sentiment is currently fueled by the allure of "The Magnificent 7" and stocks with high upside potential.
• Over the last 52 weeks, the S&P 500 is up ~28% compared to the S&P Small-Cap index (~+15%).
• Small-cap stocks present enticing prospects for growth and value for investors willing to capitalize on calculated risks. The S&P 500 P/E is 25x vs. the S&P Small-Cap at 14.8x.
• With this backdrop, there are 10 SA Quant ‘Strong Buy’ rated small-cap stocks with solid momentum, strong historical and forward growth metrics, and positive earnings expectations from Wall Street analysts.

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 a great time to buy the dip in small-cap stocks, as showcased in the iShares Core S&P Small-Cap ETF ( IJR ) seasonality chart....

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