Small-Cap Stocks May Be Getting Ready to Run. 5 that are worth a look.
The S&P 600, an index of small-cap stocks, rose 2.9% on Friday, more than triple the percentage gain on the large-cap The jump came after Federal Reserve Chairman Jerome Powell reassured markets that the bank is in no hurry to raise interest rates. According to The Leuthold Group, the average one-year earnings multiple for stocks in the S&P 600 is about 0.75 times the average for the S&P 500. If earnings forecasts for small caps grow faster than those for large caps, small stocks tend to outperform better, Leuthold data shows.