three High Small-Cap Shares to Purchase for August By StockNews

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© 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.

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