Are Small Caps a Harbinger of Market Declines?

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.
5 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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Companies Mentioned in This Article

Company	MarketRank™	Current Price	Price Change	Dividend Yield	P/E Ratio	Consensus Rating	Consensus Price Target
iShares Russell 2000 ETF (IWM)	N/A	$193.23	+0.2%	1.34%	N/A	N/A	N/A
Shockwave Medical (SWAV)	4.3402 of 5 stars	$327.65	+0.0%	N/A	84.66	Hold	$309.11
EMCOR Group (EME)	3.6042 of 5 stars	$332.49	-1.1%	0.30%	24.98	Moderate Buy	$375.00
Iridium Communications (IRDM)	4.374 of 5 stars	$26.97	+3.5%	1.93%	207.46	Moderate Buy	$49.80
Saia (SAIA)	2.4191 of 5 stars	$526.39	+0.7%	N/A	39.67	Moderate Buy	$500.84
Apellis Pharmaceuticals (APLS)	4.3776 of 5 stars	$47.32	-0.4%	N/A	-10.56	Moderate Buy	$77.93
Inspire Medical Systems (INSP)	3.9934 of 5 stars	$235.59	-2.3%	N/A	-318.36	Moderate Buy	$272.20
Crocs (CROX)	3.9316 of 5 stars	$121.54	+0.4%	N/A	9.49	Moderate Buy	$147.09
Texas Roadhouse (TXRH)	3.683 of 5 stars	$150.77	+0.2%	1.62%	33.28	Hold	$136.05
Kinsale Capital Group (KNSL)	3.7233 of 5 stars	$451.59	-0.1%	0.13%	34.19	Moderate Buy	$510.00
iShares Core S&P 500 ETF (IVV)	N/A	$500.60	-0.3%	1.28%	25.43	N/A	N/A

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About Kate Stalter

stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

Areas of Expertise

Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine