Have you seen the level the top 100 stocks in the market are trading at in comparison to the rest of the other names?
If you look at things like the SPDR S&P 500 ETF Trust (NYSEArca: SPY) or Invesco QQQ Trust Series 1 (Nasdaq: QQQ), they appear to be near all-time highs. But when you look at small- and mid-cap stocks, they’ve been trading sideways.
I mean, if we weighed all stocks evenly without factoring in their market caps, we’d find that without large names like Amazon, Apple and Facebook, most names in the SPY, which tracks the S&P 500, would be choppy, too.
Also, if we compared small and large caps over time, we’d notice that smaller stocks outperform larger ones in a big way.
2 Small-Cap Stocks Set to Outperform in the Near Term
In fact, the Russell 2000 returned 308.4% from Dec. 31, 2000, to Dec. 31, 2020, while the S&P 500 only gave us 184.5%. For those of you who need a little refresher, the Russell 2000 is an index made up of 2,000 small-cap stocks.
I even tend to see the top 5 Russell 2000 stocks gain seven times more on average than the top Nasdaq 100 stocks in a six-month period.
So it’s easy to see small-cap stocks are set to outperform larger names over time.
And the first one I see doing so is Greif Inc. (NYSE: GEF).
GEF is an industrial packaging and containers company that makes things like steel, plastic, packaging accessories and fillings.
With a market cap of less than $3 billion, it’s seen three quarters of positive earnings surprises and has a one-year return of about 76%.
I have a price target at $72 per share over the next quarter. And with its price crossing its 50-day moving average to the upside, that target is probable.
Check out my short video below to learn more about GEF and the next small-cap stock set to outperform much larger names.
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P.S. In case you haven’t noticed, small-cap stocks are where it’s at…
That’s because of how volatile the stock market is right now… It’s clear that big name stocks aren’t protected against massive falls.
And that smaller stocks can prove to be more profitable in a fraction of the time.
In fact, I signaled 118% on PFSI…153% on DDD… and 414% on CNE in a matter of just one week!
These windfalls are what I like to call “microbursts,” and I’m finally revealing the details behind my strategy to the public.