The Zacks Analyst Blog Highlights: Fly Leasing, Hibbett Sports, Oasis Midstream, Quanex Building Products And Transcat

For Immediate Release

Chicago, IL – July 19, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Fly Leasing Limited (NYSE:FLY) , Hibbett Sports, Inc. (NASDAQ:HIBB) , Oasis Midstream Partners LP (NYSE:OMP) , Quanex Building Products Corporation (NYSE:NX) and Transcat, Inc. (NASDAQ:TRNS) .

Here are highlights from Thursday’s Analyst Blog:

5 Top Small-Cap Stocks Beating the Russell 2000 in 2019

This hasn’t been an easy year for small-cap stocks by any stretch of imagination. For most of July now, major benchmarks have created new milestones, led mostly by heavyweight components. In contrast, similar success has eluded their small-cap counterparts. In fact, the struggles of smaller and mid-sized companies have been hidden by the successes of their larger counterparts.

A similar story plays out when it comes to earnings numbers, with the small-cap group set to suffer its second successive quarterly decline. A more pessimistic section of analyst believes that there is no end this earnings slump.

But our estimates project a revival during the fourth quarter, with the earnings decline decelerating in the next reporting period. Also, attractive valuations, expectations of a softer dollar and falling yield spreads are likely to boost small-caps in the months ahead. This is why you should add them to your portfolio.

Small-Caps Indexes Underperform Major Benchmarks

The small-cap laden Russell 2000 Index hit a record high last in August 2018. The index comprises around 2000 U.S. firms whose market capitalizations are less than $10.1 billion, with a median market value of $791 million. Subsequently, the Russell 2000 entered a bear market, which sent it plunging 27.2% lower by last December.

The index is up 15.4% year to date but remains more than 10% lower than its earlier high. The small-cap S&P 600 Index has gained 11.4% over the same period. Meanwhile, the Dow, S&P 500 and Nasdaq have gained 16.7%, 19.1% and 23.4%, year to date. More importantly, they have recently set fresh record highs.

Earnings Slump Continues, Recovery and Revival Likely

For the small-cap S&P 600 Index, we have Q2 results from 17 index members as of Jul 17. Total earnings for these 17 companies are down 14.8% from the same period last year on 2.9% higher revenues, with 58.8% beating EPS estimates and 52.9% beating revenue estimates.

Looking at the quarter as a whole for the small-cap index, total Q2 earnings are expected to be 9.4% below the year-earlier level on 3.2% higher revenues. This compares to an 18.2% decline in Q1 earnings on 4.3% higher revenues.

In comparison, total earnings for the 44 S&P 500 members that have reported Q2 results already are up 1.1% on 2.6% higher revenues, with 81.8% beating EPS estimates and 61.4% beating revenue estimates.

Meanwhile, total S&P 500 earnings are expected to be down 2.3% from the year-earlier period on 4.0% higher revenues. (ReadZacks Investment Research

Get The News You Want

Read market moving news with a personalized feed of stocks you care about.

Get The App

Written By: Zacks Investment Research