Zacks Market Edge Highlights: SPDR S&P 600 Small Cap, First Trust NASDAQ Community Bank, Ultra Clean, PetMed Express And MKS Instruments
Zacks Investment Research | Nov 01, 2017 09:29PM ET
For Immediate Release
Chicago, IL – November 2, 2017 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: (https://www.zacks.com/stock/news/281124/is-this-a-buying-opportunity-in-small-cap-stocks )
Is This a Buying Opportunity in Small-Cap Stocks?
Welcome to Episode #105 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Zacks Director of Research, Sheraz Mian, to discuss the earnings outlook for the small caps stocks, the S&P 600 index.
The small cap stocks have been ignored by most investors as they pile into the large cap Dow Industrials and FANG names like Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX).
As a result, the small cap stocks have underperformed in 2017. The S&P 600, the small cap index, is up about 9% on the year, which, in any other year would be an excellent showing through the month of November. But this year, the S&P 500 is up 14% while the NASDAQ is up nearly 24%.
With returns like those, investors have been shunning the small caps.
Could this present a buying opportunity?
Small Cap Earnings Finally Turning Around
With about a third of the small cap S&P 600 companies already having reported earnings, the earnings picture looks healthier than it has in many quarters.
Sheraz points out that it has been negative in prior quarters but that the future is looking really bright with earnings expected to rise dramatically.
Analysts are really bullish on 2018, and that’s even before there are any corporate tax cuts as the analysts don’t take proposed legislation into account when figuring out their numbers.
Corporate tax cuts could light a fire under the mostly domestic small cap companies that have been struggling with earnings growth.
If you’re an investor looking for ways to play the small caps going forward, Tracey and Sheraz discuss possible stock and ETFs options.
5 Ways to Play the Small Cap Comeback
1. SPDR S&P 600 Small Cap (NYSE:SLY) ETF Zacks Investment Research
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