Stocks of Smaller Companies Struggle While Large-Cap Stocks Soar

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 35 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 41%
  • Publisher: 97%

Finance Berita

Stocks,Smaller Companies,S&P Small Cap 600

The S&P Small Cap 600 trades at about 12 times expected EPS for the next 12 months, a 34% discount to the S&P 500’s 18.2 times.

Stocks of smaller companies have had a plain old bad year. They’re particularly cheap now, and their fundamentals may very well improve soon.

That is no surprise. The S&P 500 is weighted by market capitalization, so the enormous tech companies that have been rallying in response to optimism about artificial intelligence have helped the overall benchmark to rise. Earnings have been an issue for small-caps. Analysts expect aggregate sales this year for the S&P 600 to drop almost 1% year over year, according to FactSet. That would send earnings per share down 14% as profit margins drop.

All that pessimism means small-cap companies should have an easier time beating bottom-line expectations, especially if the economy avoids recession and the Federal Reserve lowers interest rates to keep growth alive.

Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

 /  🏆 3. in İD
 

Terima kasih atas komentar Anda. Komentar Anda akan dipublikasikan setelah ditinjau.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

A tech stock breakout defies market bears and signals strength into year-end, analyst saysFocus longs on large-cap tech stocks, branch out beyond ‘Magnificent 7’: RenMac
Sumber: MarketWatch - 🏆 3. / 97 Baca lebih lajut »

A tech stock breakout is defying market bears and signals strength into year-end, analyst saysFocus longs on large-cap tech stocks, branch out beyond ‘Magnificent 7’: RenMac
Sumber: MarketWatch - 🏆 3. / 97 Baca lebih lajut »

Tech stocks are breaking out, defying bears and signaling year-end strength: analystFocus longs on large-cap tech stocks, branch out beyond ‘Magnificent 7’: RenMac
Sumber: MarketWatch - 🏆 3. / 97 Baca lebih lajut »