© Reuters. 3 Top Small Cap Stocks For August
Even if GDP is lower than expected, the economic recovery is still in full swing. Small-cap stocks, which have historically outperformed their large-cap competitors in the long run, tend to perform well during an economic recovery. For this reason, investors should consider small-cap stocks like Greif Inc. (NYSE :), Inter Parfums, Inc. (NASDAQ :), and Abercrombie & Fitch Company (ANF). As the economy continues to grow, this is a great time to consider small-cap stocks (short for small-cap stocks). A stock is considered small-cap when it has a market capitalization of between $ 300 million and $ 2 billion. Often times, smaller companies offer growth opportunities that larger companies cannot.
This is due to the law of large numbers. This means that as they get bigger, the harder it is for bigger companies to grow. Plus, small-cap stocks have historically outperformed their large-cap competitors. From December 31, 2000 to December 31, 2020, the small-cap index achieved a return of 308.4%, significantly outperforming the 184.5% growth of the large-cap S&P 500 index.
Small-cap stocks will also benefit from an economic recovery as they are more cyclical. So far this year the Russell 2000 is up 13.6%. This means that as the economic recovery continues, small-cap stocks like Greif Inc. (GEF), Inter Parfums, Inc. (IPAR), and Abercrombie & Fitch Company (ANF) are definitely worth considering.
Read on on StockNews
Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.
Fusion Media or any other person involved in Fusion Media assumes no liability for any loss or damage that may arise from reliance on the information contained on this website, including data, prices, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment.