Russell 2000 Outperforms S&P 500 in Early 2023
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 23h ago
0mins
Source: Fool
- Small-Cap Advantage: In early 2023, the Russell 2000 outperformed the S&P 500 for the first 14 trading days, demonstrating strong rebound potential despite a nearly 2% drop on January 23, indicating a favorable shift towards small-cap stocks.
- Valuation Gap: With the S&P 500 trading at a price-to-earnings ratio of 28 compared to the Russell 2000 ETF's 19.5, which is about a third lower, this valuation disparity may encourage a rotation from large-cap to small-cap stocks, potentially driving further gains in the latter.
- Interest Rate Downtrend: Following three rate cuts totaling 75 basis points by the Federal Reserve at the end of last year, the Russell 2000 surged 17% over the past six months, and further rate cuts could favor small-cap stocks, especially if they catch the market by surprise.
- Diverse Investment Opportunities: Investors can gain exposure to small-cap stocks through the iShares Russell 2000 ETF or opt for more focused ETFs like the Vanguard Russell 2000 Growth ETF and Vanguard Russell 2000 Value ETF, while individual stocks like Amplitude and Innodata also show strong growth potential.
Analyst Views on AMPL
Wall Street analysts forecast AMPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMPL is 15.00 USD with a low forecast of 13.00 USD and a high forecast of 18.00 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.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 10.500
Low
13.00
Averages
15.00
High
18.00
Current: 10.500
Low
13.00
Averages
15.00
High
18.00
About AMPL
Amplitude, Inc. provides a digital analytics platform that helps companies unlock the power of their products. The Company’s Digital Analytics Platform helps businesses understand how people are using their products so they can build digital experiences. Its platform comprises several primary offerings: Amplitude Analytics, Amplitude Session Replay, Amplitude Feature Experimentation, Amplitude Web Experimentation, Amplitude Activation and Amplitude Guides and Surveys. Amplitude Analytics is the cornerstone of the platform and provides real-time insights into user behavior. Amplitude Activation unifies data across multiple sources, creating a single, enriched dataset that fuels analytics and personalization. Amplitude Guides and Surveys helps companies to deploy in-product guides, tours, and surveys, using the power of behavioral insights to fuel great results. The Company's portfolio includes InfiniGrow, which is an AI marketing analytics platform.
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.
