Menu

Search

  |   Insights & Views

Menu

  |   Insights & Views

Search

Google Add as a preferred source on Google

Small caps outperforms blue chips in US

 

For the past six months US small caps are performing better than large counterparts as measured by Russell 2000 and S&P 500 indices. Since late october 2014, Russell 2000 rose 13.7% compared to 4.4% rise in S&P 500. Chart courtesy Sober look

  • Investors remain bullish on US stocks, however exercising cautions over stronger US dollar.

  • Large corporate houses that have presence across globe are expected to suffer from stronger US dollar as export revenues and royalty payments will get affected.

  • According to EPFR, intelligence provider on Global fund statistics after nearly $31.5 billion withdrawal for the sector in 2014, this year they have started attracting flows. Investors expect small companies to benefit most out of US recovery amid stronger dollar.

  • Average sales per share is up 6.6% this year for S&P600 companies so far this year, compared to 0.1% for large caps.

  • UBS expects earnings for small companies would be in double digit this year whereas average for large caps would remain in single.

  • Investors remain most bullish healthcare and pharmaceuticals whereas energy sector is expected to do worst.

  • Bluebird bio returned more than 300% since February 2014, followed by Agios Pharma and Achillion Pharma both of which have returned more than 200%.
  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.