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5 Russell 2000 Stocks That Have Crushed the Index in 2017
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The stock market has been on a spectacular run since Trump’s ascension to the Presidency. The Russell 2000 index, which was lingering at 1,195 at the time of Trump’s election on Nov 8, 2016, has surged nearly 350 points since then. Notably, so far this year, the benchmark has gained nearly 14%, with majority of the rally witnessed in the latter part.
The optimism around Trump’s tax reform turned the tide for the small-cap stocks. It also acted as one of the reasons for the overall gain so far this year. This is driven by the fact that small-caps stocks are one of the biggest beneficiaries of Trump’s tax cut policy. Per the Thomson Reuters data, these stocks pay a median effective tax rate of 31.9% at present. Now, as per the new tax act, the corporate tax rate has come down to 21%.
These small-cap stocks do not have much exposure to the global markets and their financial performance is mainly tied to the domestic economy. The U.S. economy continued to gain strength in 2017, given the increase in consumer spending, improvement in labor market, higher customer confidence and boost in wages. Thus, these small-cap stocks generally tend to outperform on the back of improving American financial health as they are less susceptible to global concerns.
Additionally, three interest rate hikes this year by the Fed act as a sign of stronger economy and gave further boost to investors’ confidence in small-cap stocks. Thus, we suggest you to place your bet on these small-cap stocks as they are expected to lead to steady returns.
Stocks That Outperformed Russell 2000
While Russell 2000 scaled to record highs this year, we have selected such stocks that have even fared better than the index. Such stocks are poised to gain even further in the near term based on an improving domestic economy and benefits from lower tax rates.
Additionally, these stocks have a market capitalization between $500 million and $1 billion. Also, the stocks have been witnessing positive earnings estimate revisions, which generally translate into rapid price appreciation.
Johnson Outdoors (JOUT - Free Report) is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products.
Johnson Outdoors sports a Zacks Rank #1 and has a VGM Score of A. The Zacks Consensus Estimate for the current fiscal year has moved 4.5% upward over the last 60 days. The company has returned 61.8% year to date and boasts a market cap of $642 million.
Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association. It is the largest managed care company in Puerto Rico, serving approximately one million members across all regions.
The Zacks Consensus Estimate for Triple-S Management for the current year witnessed a rise of 43% over the last 60 days. The company, with a market cap of $616 million, has jumped 24.4% so far this year. It sports a Zacks Rank #1 and has a VGM Score of A.
Comtech Telecommunications Corporation (CMTL - Free Report) designs, develops, produces and markets innovative products, systems and services for advanced communications solutions.
The company has a market cap of $525 million. The Zacks Consensus Estimate for the current fiscal year has improved 12.8% over the last 60 days. The company’s shares have surged 87.8% year to date. Comtech Telecommunications has a Zacks Rank #1 and VGM Score of A.
Casella Waste Systems (CWST - Free Report) is a regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services, generates steam and manufactures finished products utilizing recyclable materials.
Casella Waste has a Zacks Rank #2 and VGM Score of A. The company has a market cap of $939 million and is up 80% year to date. The Zacks Consensus Estimate for the current year has moved 14.3% upward over the last 60 days.
Sucampo Pharmaceuticals is focused on the development and commercialization of specialized medicines that meet the major unmet medical needs of patients worldwide.
Sucampo Pharmaceuticals, with a market cap of $838 million, has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for the current year has improved significantly over the last 60 days. The stock has rallied 32.7% so far this year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
5 Russell 2000 Stocks That Have Crushed the Index in 2017
The stock market has been on a spectacular run since Trump’s ascension to the Presidency. The Russell 2000 index, which was lingering at 1,195 at the time of Trump’s election on Nov 8, 2016, has surged nearly 350 points since then. Notably, so far this year, the benchmark has gained nearly 14%, with majority of the rally witnessed in the latter part.
The optimism around Trump’s tax reform turned the tide for the small-cap stocks. It also acted as one of the reasons for the overall gain so far this year. This is driven by the fact that small-caps stocks are one of the biggest beneficiaries of Trump’s tax cut policy. Per the Thomson Reuters data, these stocks pay a median effective tax rate of 31.9% at present. Now, as per the new tax act, the corporate tax rate has come down to 21%.
These small-cap stocks do not have much exposure to the global markets and their financial performance is mainly tied to the domestic economy. The U.S. economy continued to gain strength in 2017, given the increase in consumer spending, improvement in labor market, higher customer confidence and boost in wages. Thus, these small-cap stocks generally tend to outperform on the back of improving American financial health as they are less susceptible to global concerns.
Additionally, three interest rate hikes this year by the Fed act as a sign of stronger economy and gave further boost to investors’ confidence in small-cap stocks. Thus, we suggest you to place your bet on these small-cap stocks as they are expected to lead to steady returns.
Stocks That Outperformed Russell 2000
While Russell 2000 scaled to record highs this year, we have selected such stocks that have even fared better than the index. Such stocks are poised to gain even further in the near term based on an improving domestic economy and benefits from lower tax rates.
These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a VGM Score of B or better. You can see the complete list of today’s Zacks #1 Rank stocks here.
Additionally, these stocks have a market capitalization between $500 million and $1 billion. Also, the stocks have been witnessing positive earnings estimate revisions, which generally translate into rapid price appreciation.
Johnson Outdoors (JOUT - Free Report) is a leading global outdoor recreation company that turns ideas into adventure with innovative, top-quality products.
Johnson Outdoors sports a Zacks Rank #1 and has a VGM Score of A. The Zacks Consensus Estimate for the current fiscal year has moved 4.5% upward over the last 60 days. The company has returned 61.8% year to date and boasts a market cap of $642 million.
(Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here.)
Triple-S Management Corporation is an independent licensee of the Blue Cross Blue Shield Association. It is the largest managed care company in Puerto Rico, serving approximately one million members across all regions.
The Zacks Consensus Estimate for Triple-S Management for the current year witnessed a rise of 43% over the last 60 days. The company, with a market cap of $616 million, has jumped 24.4% so far this year. It sports a Zacks Rank #1 and has a VGM Score of A.
Comtech Telecommunications Corporation (CMTL - Free Report) designs, develops, produces and markets innovative products, systems and services for advanced communications solutions.
The company has a market cap of $525 million. The Zacks Consensus Estimate for the current fiscal year has improved 12.8% over the last 60 days. The company’s shares have surged 87.8% year to date. Comtech Telecommunications has a Zacks Rank #1 and VGM Score of A.
Casella Waste Systems (CWST - Free Report) is a regional, integrated solid waste services company that provides collection, transfer, disposal and recycling services, generates steam and manufactures finished products utilizing recyclable materials.
Casella Waste has a Zacks Rank #2 and VGM Score of A. The company has a market cap of $939 million and is up 80% year to date. The Zacks Consensus Estimate for the current year has moved 14.3% upward over the last 60 days.
Sucampo Pharmaceuticals is focused on the development and commercialization of specialized medicines that meet the major unmet medical needs of patients worldwide.
Sucampo Pharmaceuticals, with a market cap of $838 million, has a Zacks Rank #2 and a VGM Score of B. The Zacks Consensus Estimate for the current year has improved significantly over the last 60 days. The stock has rallied 32.7% so far this year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>