富途资讯统计发现，在标普600指数的成分股中，涨幅靠前的小盘股包括半导体设备制造商When the market is volatile and uncertain, many stock investors tend to choose the large-scale enterprises that they think are the most stable, that is, large-cap stocks. But in the US stock market, Little Star can also shine!
So far this year, the S & P small-cap 600 index has risen 8.64%, far outperforming the S & P 500's 4% gain.
In addition, the willingness of funds to allocate small-cap stocks has increased significantly. As of Feb. 22, investors had invested a net $4.2 billion in U.S. mutual funds and exchange-traded funds (ETF) that bought small-cap stocks and withdrew $17.4 billion from large-cap funds, according to Refinitiv Lipper.
According to Futu statistics, among the components of the S & P 600 index, the top gainers in small-cap stocks include semiconductor equipment manufacturers.$Axcelis Technologies (ACLS.US)$World-renowned perfume merchants$Inter Parfums (IPAR.US)$And Communication equipment Co.$Encore Wire (WIRE.US)$Year-to-date increases of 62.76%, 43.76% and 43.14%, respectively. These returns easily beat the performance of US stock giants such as Apple Inc, Microsoft Corp and Amazon.Com Inc over the same period.
Compared with large companies, small companies are generally considered riskier and more sensitive to economic changes because most of their sales tend to come from the United States. Historically, small-cap stocks have led gains when markets recover, but they have also been sold off faster in recessions.
Despite fears of a potential recession, a recent series of key economic data showed a strong start to the US economy in 2023, with strong non-farm payrolls data, as well as retail sales and service sector activity accelerating in January. this makes small-cap stocks more attractive.
In the view of analysts, the current valuations of small-cap stocks are still attractive compared with large-cap stocks.
Wall Street often uses the ratio of a company's share price to earnings as a measure of whether a stock's valuation is cheap or too high. Excluding unprofitable companies, the S & P 600 trades at 13.8 times forward earnings over the next 12 months, below its 20-year average of 15.5, according to FactSet, while the S & P 500 currently trades at 17.6 times forward earnings.
Jim Masturzo, chief investment officer of Research Affiliates, said that over the next 10 years, adjusted for inflation, the small-cap index represented by the Russell 2000 is expected to return 5 per cent a year, more than double the expected return of 1.9 per cent for the S & P 500.
In addition, small-cap stocks ushered in a "gorgeous rebound", but behind the stock buyback. According to Bank of America Corporation's data, some small-cap companies with better share prices have been actively buyback in the past 12 months. Jill Carey Hall, equity strategist at Bank of America, said
Small-cap stocks are historically low, and buybacks at lower valuations tend to be more popular with investors than at higher valuations.
Highlight the charm in the market shock
Is the rise in small-cap stocks sustainable?
Cattle friends also found which low-key high-quality small-cap stocks?
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