Ballast Emerging for Small-Cap Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 17 2024
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Source: NASDAQ.COM
- Small-cap stocks showing signs of solid footing: Small-cap stocks, including the Russell 2000 Index, have seen a significant increase, suggesting potential for more substantial gains.
- Performance of related ETFs: The Invesco NASDAQ Future Gen 200 ETF (QQQS) has surged over the past month, indicating positive momentum for smaller stocks.
- Impact of interest rates and economy on small-caps: A "higher for longer" interest rate environment could benefit small-cap stocks, as it reflects confidence in the U.S. economy.
- Valuation and discount of small-cap stocks: Small-cap stocks are currently trading at a 27% discount relative to the S&P 500, presenting an opportunity for investors.
- Biotechnology mergers and acquisitions activity: Increasing M&A activity in the biotech sector could serve as a catalyst for QQQS, which has a significant healthcare sector allocation.
Analyst Views on QQQS
Wall Street analysts forecast QQQS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QQQS 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: 37.280
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Current: 37.280
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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.
