The massive run of the major indices has been mind-boggling over the past 18 months, and the wealth generated by it has been of enormous benefit to many Americans. However, the reality is that the stock market, especially the leaders in the large cap market, is very overbought and is trading at multiples well above normal levels. What’s more, investors duplicate their portfolio and in many cases don’t even realize it.
Microsoft, Apple, Amazon, Tesla, Alphabet, Meta (Facebook) and Nvidia represent 26.41% of the SPY fund and these same stocks represent 50.76% of the QQQ fund. If you own these two popular equity funds, you still have the same position. Small cap stocks can help you diversify, and they are the cheapest compared to their large cap counterparts, as they have been for years.
A small-cap stock typically comes from a company with a market capitalization of less than $ 2 billion. However, the large companies in the group often have a market capitalization of up to $ 6 billion. Combined with other investment strategies, small cap stocks can help diversify a portfolio and also help investors stop duplicating their holdings.
We sifted through our 24/7 Wall St. research universe for well-known small caps that are rated Buy. The next five that look like good buys now. It is always important to remember that no analyst report should be used as the sole basis for any buy or sell decision.
This premier small cap is popular on Wall Street, and hedge funds own a large chunk of it. Citi Trends Inc. (NASDAQ: CTRN) operates as a value-priced retailer of fashion clothing, accessories and home goods, primarily aimed at African American and Latin families in the United States. As of January 30, 2021, the company operated 585 stores in urban and rural markets in 33 states.
The company offers clothing, such as sportswear and fashion footwear for men, women and children, including newborns, infants, toddlers, boys and girls, as well as children’s clothing. nightwear, scrubs and children’s uniforms. It offers underwear and outerwear for men and women.
Its accessories include handbags, luggage, hats, belts, sunglasses, jewelry and watches. The company offers home and lifestyle products for the bedroom, bathroom and kitchen, including decorative accessories; food, technology, team sports and health products; and seasonal items, books and toys. This
Craig Hallum has a huge price target of $ 165 on Citi Trends stock. The consensus target is much lower at $ 131.25, and shares closed at $ 84.14 on Wednesday, after popping nearly 4% for the day.