The Russell 2000 Index (RUT), a widely followed small-cap stock benchmark, typically exhibits higher volatility than large-cap stocks, making it more attractive to investors with higher risk tolerance. But while small-cap stocks have dominated bull markets in the past, RUT has so far been underperforming, fueled by the artificial intelligence (AI) revolution. The S&P 500 Index ($SPX) is up 24% over the past 52 weeks, while RUT is up 15.7%. In 2024, SPX maintained its upward trajectory with an increase of 6.9%, while RUT declined by more than 1%%.
However, not all small-cap stocks underperform. Perhaps that’s why Goldman Sachs (GS) is now urging investors to be “picky” about small-cap stocks, after initially expecting group returns to be 9% in the first half of 2024. .
With that in mind, let’s take a look at five small-cap stocks that have outperformed RUT and SPX on a year-to-date basis. Bullish analyst forecasts have further upside.
Small Stock #1: Mission Produce
Mission Produce Inc. (AVO), headquartered in Oxnard, California, is a global leader in the sourcing, cultivation, packaging and distribution of avocados, mangoes and blueberries. It is valued at $812.6 million in market capitalization and provides a variety of services to its customers, including aging, packaging, logistics management, and market insights.
AVO stock has gained 2.7% over the past 52 weeks and is up 12.4% year-to-date.
Analysts are optimistic about the outlook for Mission Produce stock, with two analysts interviewed unanimously giving it a “strong buy” rating. The average price target of $14 indicates an expected upside of 23.5%.
Small Stock #2: Geo Group
Florida-based Geo Group Inc. (GEO), with a market capitalization of $1.9 billion, is a government services provider specializing in the design and support services of secure facilities and processing centers, or private prisons, around the world. We provide a full range of innovative solutions to our government partners, giving GEO a unique competitive advantage in capturing future high-quality growth opportunities.
GEO stock has increased 104.3% over the past 52 weeks and is up 37.3% year-to-date.
On March 14, George Zoley, Executive Chairman of Geo Group, purchased 50,000 shares of the company’s stock at an average price of $12.4805 per share, for a total price of approximately $624,025. With this acquisition, Mr. Zory’s stake in the company increased to 3.0177%. It was the first time in nearly three years that Zory or someone close to him had made such a move. This represents a strong vote of confidence and could be a bullish sign.
Analysts remain optimistic about Geo Group stock, with three analysts interviewed unanimously rating it a “strong buy.” The average price target of $19.25 suggests a potential upside of 29.5% from current price.
Small Stock #3: Land’s End
Headquartered in Dodgeville, Wisconsin, Lands’ End (LE) is a digital retailer of apparel, swimwear, outerwear, accessories, footwear, home goods, and uniforms with operations in the United States, Europe, Asia, and internationally. Masu.
Lands’ End stock, valued at $410.6 million, has increased 88.6% over the past 52 weeks and 36% year-to-date.
Land’s End stock received a unanimous “strong buy” rating from two analysts interviewed. The average price target of $14 suggests an upside potential of 7.6% from the current price, and the street-high price target of $15 suggests an upside potential of 15.3%.
Small Stock #4: PaySign
Paysign Inc (PAYS), headquartered in Nevada, has a market capitalization of $232 million and offers prepaid card programs, comprehensive patient affordability products, and digital banking for businesses, consumers, and government agencies. Services, and provides integrated payment processing services. Its functions include transaction processing, cardholder registration, account funding, account management, reporting, and customer service.
PaySign stock has increased 28.6% over the past 52 weeks and 57.5% year-to-date.
PaySign stock received a unanimous “Strong Buy” rating from all four analysts interviewed, with an average price target of $5.38, indicating a potential upside of approximately 22% from the current price. ing.
Small-Cap Stock #5: Summit Therapeutics
Miami-based Summit Therapeutics (SMMT) is a biopharmaceutical company focused on discovering, developing and commercializing medical therapies that benefit patients, physicians, caregivers and society in the United States and United Kingdom. The company’s lead candidate, ibonescimab, is a bispecific antibody targeting immunotherapy and anti-angiogenesis, and its anti-infective drug portfolio includes its SMT-738 to treat multidrug-resistant infections. contained.
Summit Therapeutics’ stock, valued at $2.49 billion, has increased 184.8% over the past 52 weeks and 47.8% year-to-date.
Summit Therapeutics stock has been rated a “strong buy” by 1 analyst covering the stock. Summit’s price target is $8, indicating 107.3% upside potential.
On the date of publication, Sristi Suman Jayaswal did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please see the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
