4 Reasons to Buy Small-Cap ETFs Now
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Small-Cap Stocks Performance: Small-cap stocks, represented by the Russell 2000 Index, have underperformed compared to larger indices this year, with a 4.4% increase versus over 21% gains in major indices like the S&P 500 and Nasdaq-100, largely due to higher borrowing costs affecting capital expenditure.
Economic Growth and Labor Market: The U.S. economy grew at an annualized rate of 3% in Q2, exceeding expectations, which bodes well for small-cap stocks as they are more domestically focused; additionally, unemployment claims fell below expectations, indicating a stable labor market amidst recent interest rate cuts by the Federal Reserve.
Analyst Views on IWM
Wall Street analysts forecast IWM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IWM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 269.790
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Current: 269.790
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
