{"id":18685,"date":"2023-06-06T01:30:43","date_gmt":"2023-06-06T05:30:43","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/small-cap-stocks-lag-in-2023-but-heres-where-theyre-finally-starting-to-see-positive-earnings-revisions\/"},"modified":"2023-06-06T01:30:45","modified_gmt":"2023-06-06T05:30:45","slug":"small-cap-stocks-lag-in-2023-but-heres-where-theyre-finally-starting-to-see-positive-earnings-revisions","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=18685","title":{"rendered":"Small-cap stocks lag in 2023, but here\u2019s where they\u2019re \u2018finally\u2019 starting to see positive earnings revisions"},"content":{"rendered":"
\n

Small-cap stocks in the U.S. are putting up \u201ca fight,\u201d showing \u201cbetter trends\u201d while lagging the S&P 500 and Nasdaq Composite this year, according to RBC Capital Markets.<\/p>\n

The Russell 2000, an index tracking U.S. small-cap stocks, has seen modest gains of around 2.8% so far in 2023, while the S&P 500 has jumped 11.7% and the technology-heavy Nasdaq Composite has surged 26.8%, according to FactSet data based on Monday afternoon trading levels.\u00a0<\/p>\n

\n

\u201cNasdaq valuations look stretched, but unlike the Tech bubble S&P 500 and Russell 2000 are well below recent peaks,\u201d said Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, in a research note Monday. RBC is overweight small-cap stocks relative to large-cap.\u00a0<\/p>\n

\u201cSmall Caps are finally starting to participate in the EPS revisions recovery,\u201d said Calvasina, referring to their earnings per share. \u201cThe rate of upward EPS estimate revisions has moved up to 50% for the Russell 2000,\u201d she said, with more than half the sectors in the index \u201cnow in positive revisions territory for both EPS and revenues.\u201d<\/p>\n

<\/p>\n
<\/p>\n<\/figure><\/div>\n

Utilities, consumer staples, healthcare, industrials, communications services, information technology and the category labeled TIMT, or technology, internet, media and telecommunications, are among the areas that RBC highlighted as having both positive EPS and revenue revisions among small-cap stocks.<\/p>\n

According to the note, small-cap stocks usually bottom three to six months before EPS forecasts start rising again.\u00a0<\/p>\n

\u201cThe Russell 2000 has continued to fight for a bottom relative to the S&P 500 with the relative ratio between the two indexes just a touch above its March 2020 lows,\u201d said Calvasina.<\/p>\n

The S&P 500, a measure of large-cap stocks in the U.S., is nearing a bear-market exit based on its trading level of around 4,287 in afternoon trading Monday, FactSet data show, at last check. The popular index will exit its bear market at or above 4,292.438, according to Dow Jones Market Data.<\/p>\n

U.S. stocks were trading mixed Monday afternoon, with the S&P 500
\n SPX,
\n -0.20%<\/bg-quote>
\n up 0.1%, the Dow Jones Industrial Average
\n DJIA,
\n -0.59%<\/bg-quote>
\n down 0.3% and the Nasdaq
\n COMP,
\n -0.09%<\/bg-quote>
\n gaining 0.2%, FactSet data show, at last check.\u00a0<\/p>\n

As for small-cap stocks, the Russell 2000
\n RUT,
\n -1.32%<\/bg-quote>
\n was down 1.1% in Monday afternoon trading. That\u2019s after jumping 3.6% on Friday to close with its largest daily percentage gain since Nov. 10, according to Dow Jones Market Data.\u00a0<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Small-cap stocks in the U.S. are putting up \u201ca fight,\u201d showing \u201cbetter trends\u201d while lagging the S&P 500 and Nasdaq Composite this year, according to RBC Capital Markets. The Russell 2000, an index tracking U.S. small-cap stocks, has seen modest gains of around 2.8% so far in 2023, while the S&P 500 has jumped 11.7% […]<\/p>\n","protected":false},"author":1,"featured_media":18686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-18685","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nSmall-cap stocks lag in 2023, but here\u2019s where they\u2019re \u2018finally\u2019 starting to see positive earnings revisions | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Small-cap stocks in the U.S. are putting up \u201ca fight,\u201d showing \u201cbetter trends\u201d while lagging the S&P 500 and Nasdaq Composite this year, according to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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