These small-cap stocks might make you the most money in 2023, based on two important data points

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Previous periods of low valuations have resulted in big comebacks for smaller companies.

Small-cap stocks are trading near a two-decade low relative to large-cap stocks. When the stock market rebounds next year, as is expected by many investment-bank strategists, those smaller companies may outperform.

Below is a screen of analysts’ favorite small-cap stocks for 2023, culled from the S&P Small Cap 600 Index SML , which requires that companies be profitable for inclusion. That signals a rebound for the stock market as a whole, which might mean an even greater increase for small-cap stocks. Then again, the weighted forward price-to-earnings ratio for the S&P Small Cap 600 Index is now 12.7, down from 15.5 a year ago, according to FactSet.

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Small cap isn’t cheap, big cap is expensive. This just means more downside for the big company’s. Second of all, good job to marketwatch. You finally wrote a story about the market and not tabloid bullshit.

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Average PE 88

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