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DeepNewz, mobile.
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Analysts are projecting significant earnings growth for small-cap stocks, estimating approximately 50% earnings per share (EPS) growth through 2026, despite the current earnings recession they are experiencing. Investment experts are highlighting small caps as an attractive option, noting that they are currently undervalued compared to mega-cap stocks. A recent analysis indicates that small caps and high-dividend yield companies are trading at 1.5 standard deviations below their average valuation over the past 35 years, while high-margin companies are 2.5 standard deviations above their historical norm. This valuation disparity suggests potential opportunities for value-conscious investors looking to diversify their portfolios beyond larger corporations.
"Small caps and companies that pay a high dividend yield are currently 1.5 standard deviations cheaper than their average for the last 35 years. Meanwhile, high-margin companies [are] some 2.5 standard deviations above the 35-year norm." Goldman Sachs https://t.co/xZcz6dczpo
"Small caps and companies that pay a high dividend yield are currently 1.5 standard deviations cheaper than their average for the last 35 years. Meanwhile, high-margin companies [are] some 2.5 standard deviations above the 35-year norm." Goldman Sachs via @johnauthers https://t.co/AOkUkdf6aM
"The good news for valuation-conscious investors is there is plenty of value outside of the mega-cap stocks. Valuations for small and mid cap stocks are still pretty cheap. They are far less expensive now than they were before the pandemic. Maybe there’s a reason for that but… https://t.co/Kgs1FAcrH4
