12 Affordable Small-Cap Stocks to Watch as Market Trends Shift
As small-cap stocks gain traction, here are 12 budget-friendly options to consider for your investment portfolio
Small-Cap Stocks, Investment, Market Trends, UGI Corp, KB Home, Atlanticus Holdings, USA
This idea comes from a study by Rolf Banz back in the late 1970s. He found that smaller companies often had better returns than larger ones. But, here’s the catch: that trend hasn’t always held up over the years. In fact, small-cap stocks have lagged behind the market for quite a while now.
Still, not everyone agrees with that conclusion. Guido Baltussen from Erasmus University thinks there are times when small-cap stocks do outperform. He points out that there have been periods over the last 158 years where smaller stocks did better than their larger counterparts.
According to a recent study, we might be entering one of those periods now. The research highlights three key factors that suggest small-cap stocks could shine for the next few years. If you’re thinking about investing, the study suggests looking for small-cap stocks that are not only affordable but also show strong performance.
So, if you’re on the hunt for some promising small-cap stocks, there are a few that have caught the eye of investment newsletters. These stocks have low price-to-earnings ratios and have performed well over the past year. The biggest names on the list include UGI Corp and KB Home, while Atlanticus Holdings is the smallest.
In short, while small-cap stocks have had their ups and downs, there might be a chance for them to lead the market again. Keep an eye on these affordable options if you’re looking to invest.