U.S. small-cap stocks surge - smaller firms, bigger profits to seize
Small-Caps Gain Momentum: A New Rally on the Horizon?
Small-cap companies, known for their niche specializations, are experiencing a resurgence in the market. This comeback is attributed to the hope for lower interest rates, valuation fantasies, and the return of earnings growth.
One of the high-flyers in focus is a company specializing in decentralized energy supply for AI data centers. This innovative company addresses the central problem of the AI world: power supply. Remarkably, its technology is already being used by big names like Oracle. Since the recommendation, the company's share price has surged by over 120%.
Another small-cap specializes in secure satellite communication. This company's customer base includes the U.S. government and leading airlines, making it a significant player in the industry. Analysts see great potential in new contracts, additional frequency rights, and a significant expansion of network capacity by 2026 for this small-cap.
The strength of U.S. small-caps is evident in the Russell 2000 index's best performance against the Nasdaq 100 in nearly four decades. This performance indicates a strong comeback against tech giants.
Earnings estimates for the Russell 2000 are rising sharply, with analysts expecting around 30% growth by 2026. Small-caps are currently undervalued, interest-sensitive, and growth-oriented, trading at a discount compared to the S&P 500, with a P/E ratio of around 16, not seen in over a decade.
Investors are seeing this as the start of a new small-cap rally, with tailwinds for select high-flyers that impress operationally and strategically. Through strategic acquisitions, some small-caps are opening up new growth markets and increasing profitability.
For those interested in investing in this emerging market, DER AKTIONÄR offers Germany's largest financial magazine for €19.90 instead of €31.20 in the first month, and can be canceled monthly. However, it's important to note that the specific small-caps currently reported in DER AKTIONÄR as offering marketable opportunities were not specified in the search results. Companies like Basler and 2G Energy, mentioned from a different source, are generally part of discussions about small-caps in the current market environment.
In conclusion, the resurgence of small-caps presents an exciting opportunity for investors. With operational strength, technological relevance, and strategic tailwinds, these high-flyers could lead the way in the new market rally. As always, it's essential to do thorough research before making investment decisions.
