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Are Small Caps a Harbinger of Market Declines?

Kate Stalter
Written by Kate Stalter
May 9, 2023

Key Points

  • Small-cap stocks, as tracked by the iShares Russell 2000 ETF, outperformed the S&P 500 in the past week.
  • The Russell 2000 small-cap index is trading below its 50-day average, while the S&P 500 holds above that line. 
  • Small caps can be more sensitive to various economic factors, including inflation or higher interest rates.
  • Smaller stocks s can take the lead as markets recover from corrections, but they also tend to take the lead down as markets sell off.
  • Companies with a smaller market capitalization can be bellwethers for broader market action. 
  • Five stocks we like better than iShares Russell 2000 ETF.

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Should You Invest $1,000 in iShares Russell 2000 ETF Right Now?

Before you consider iShares Russell 2000 ETF, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and iShares Russell 2000 ETF wasn't on the list.

While iShares Russell 2000 ETF currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Kate Stalter
About The Author

Kate Stalter

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Learn More about Kate Stalter
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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
iShares Russell 2000 ETF (IWM)N/A$213.63-0.4%1.16%16.63Moderate Buy$214.06
Shockwave Medical (SWAV)N/A$334.75flatN/A78.21N/AN/A
EMCOR Group (EME)
2.6277 of 5 stars		$471.69+1.2%0.21%23.96Moderate Buy$494.50
Iridium Communications (IRDM)
3.9855 of 5 stars		$28.77-0.6%1.95%30.28Moderate Buy$34.25
Saia (SAIA)
4.1145 of 5 stars		$255.16-3.1%N/A18.89Hold$333.84
Apellis Pharmaceuticals (APLS)
4.7256 of 5 stars		$19.27-1.6%N/A-9.49Moderate Buy$40.05
Inspire Medical Systems (INSP)
4.7992 of 5 stars		$132.43-3.1%N/A76.55Moderate Buy$211.91
Crocs (CROX)
4.1774 of 5 stars		$104.29-0.8%N/A6.52Moderate Buy$139.79
Texas Roadhouse (TXRH)
3.6895 of 5 stars		$187.84-0.7%1.45%29.03Moderate Buy$191.71
Kinsale Capital Group (KNSL)
1.5423 of 5 stars		$459.72+0.1%0.15%25.84Hold$484.57
iShares Core S&P 500 ETF (IVV)N/A$604.31-0.3%1.28%25.71Moderate Buy$604.26
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