Welcome to Extreme Investor Network, where we provide you with valuable insights and analysis on the latest trends in investing. Today, we are diving into the world of small-cap stocks and how they may outperform in the current market rally of 2024.
While mega-cap technology companies like Nvidia have been leading the charge with impressive gains, the focus is now shifting to small-cap stocks as interest rate cuts loom on the horizon. The Russell 2000 small-cap index has already shown a 6% increase in July, indicating potential for growth in this segment of the market.
Our team at Extreme Investor Network has conducted a thorough screening process to identify small-cap stocks that have the potential for a significant boost. To make it into our selection, these stocks had to meet specific criteria:
– Market capitalization between $1 billion and $2 billion
– Forward price-to-earnings ratio lower than the Russell 2000’s ratio of 25
– Average price target suggesting at least 10% upside with a minimum of five analyst estimates
– Earnings per share growth of over 15% in the last three years
One standout from our list is Papa John’s International, a pizza chain retailer that has seen a 46% drop in shares this year. However, consensus estimates point to a potential upside of 59%. Analysts at Stifel have upgraded the stock to a hold rating, with a price target that implies a 41% rally from current levels.
Another interesting pick is Jack in the Box, a fast-food chain with shares down 35% year to date. RBC Capital Markets has initiated coverage with an outperform rating, citing compelling growth opportunities and an attractive valuation as drivers for potential upside.
Stock photography company Shutterstock, renewable energy firm Canadian Solar, door manufacturer Janus International, and distilled spirits producer MGP Ingredients are also part of our list, each showing potential for significant gains.
At Extreme Investor Network, we are dedicated to providing you with exclusive insights and actionable information to help you navigate the complex world of investing. Stay tuned for more updates and analysis on the latest market trends and investment opportunities.