Latest news with #FrancisGannon
Business Insider
02-07-2025
- Business
- Business Insider
4 reasons forecasters are bullish on the market's smallest stocks after years of underperformance
Stock forecasters can't stop talking about the market's smallest and least impressive stocks. They're referring to the small-cap sector, an area of the stock market that strategists have been bullish on, despite underperforming the overall market in recent years. The Russell 2000, which slipped into a bear market over the first half of the year, has recouped most of its losses in recent months. But the index of small-cap US firms is still down about 1% year-to-date, lagging the S&P 500 's 5% gain. On a five-year horizon, the Russell 2000 has yielded a 53% return — underwhelming compared to the S&P 500's 98% climb. But there are a few reasons some forecasters remain bullish on the sector. Here's what strategists are saying. 1. A possible IPO boom on the horizon There's reason to believe that more small, private companies are gearing up to go public in the near term, according to analysts at Janus Henderson. Small private firms have typically relied on private equity investors to get fresh capital, but many private loans are structured over a 5- to 7-year time horizon, analysts said, and companies will likely be looking for new sources of money once the debt matures. Interest rates are also higher than they were in the past decade, which could make it more challenging to attract private investors, they added. "That's why going public could become a more attractive path for companies needing refinancing or private equity sponsors looking for an exit," analysts said, pointing to the surge in IPOs over the first half of 2025 compared to the prior year. "A reopening IPO market typically benefits the entire small-cap asset class as quality companies tend to go public first and generate positive momentum across the space." Rebounding from a bear market Small-cap stocks have historically performed well after bear markets, according to an analysis from Royce Investment Partners. The Russell 2000 fell into a bear market earlier this year, falling 21% from January to April 8, and historically, stocks in the index have seen healthy growth following a trough. In 2020, the Russell 2000 plunged more than 30% peak-to-trough amid the broader coronavirus-fueled sell-off, but value and growth stocks in the index more than doubled in value in the year following the event, according to Francis Gannon, the co-chief investment officer at Royce. Over the last 20 years, small-caps gained an average 60% in the year following a bear market, Gannon added in a note. Valuations in the sector also remain attractive. "We see the small-cap market as fundamentally healthy. The disconnect between large caps and small caps reflects market sentiment rather than underlying business performance," analysts at Janus Henderson said. Strong investment themes According to Jill Hall, the head of US small and mid-cap strategy at Bank of America, small-cap stocks should also benefit from a handful of bullish themes unfolding in the broader economy. Here are some of the tailwinds Hall sees: Reshoring. The economy moving more of its manufacturing activity back to the US could be a boon for small public companies. In a note last year, Morgan Stanley estimated that restoring could unlock as much as $10 trillion in value for the US economy over the next decade. Capital expenditures. The US is in the midst of a big capex cycle, which could also benefit small firms, Hall suggested. US private fixed investment clocked in around $4.2 trillion in the first quarter of 2024, according to data from the Bureau of Economic Analysis De-globalization. The US decreasing its reliance on supply chains abroad could also support small domestic firms. "Overall, I do think that over the long-term, there is still greater potential for outperformance of small-caps, given where valuations are, and given some of the multi-year themes," Hall said, speaking to CNBC this week. The America-first economy The Trump administration's push for an America-first economy should also benefit small public firms, according to Peter Kraus, the CEO of the asset manager Aperture Investors. Kraus pointed to the GOP tax and spending bill, which includes proposals like extending Trump's 2017 tax cuts and bigger tax breaks for some businesses and workers. "Congress is going to focus on the domestic economy, and I do think domestically oriented companies, principally mid-cap and small-cap companies, are going to benefit. And they've been the laggards in the last five years," Kraus said, speaking to CNBC on Tuesday.
Yahoo
22-04-2025
- Business
- Yahoo
Is Ambev S.A. (NYSE:ABEV) the Worst Affordable Stocks to Buy Under $10?
We recently published a list of 10 Worst Affordable Stocks to Buy Under $10. In this article, we are going to take a look at where Ambev S.A. (NYSE:ABEV) stands against other worst affordable stocks to buy under $10. On February 18, Chris Clark, Chief Executive Officer, Co-Chief Investment Officer, and Francis Gannon Co-Chief Investment Officer, Managing Director at Royce Investment released their research on Small Cap stocks. The report explored the potential resurgence of small-cap stocks, emphasizing their relatively attractive valuations, promising earnings outlook, and the role of heightened market volatility. The experts highlighted that historically, small-cap stocks have outperformed large-cap stocks over the long term but with higher volatility. However, this advantage has eroded recently, with large-cap stocks dominating performance since 2011. Small-cap growth fared better than value during this period, but 2024 marked the eighth consecutive year of underperformance for small-caps relative to large-caps. Royce Investment remains optimistic about a small-cap resurgence in the current year. They highlighted that one key factor supporting small-cap leadership is valuation. Small-cap stocks are currently trading at their largest discount to large-caps in over 25 years based on metrics such as enterprise value over earnings before interest and taxes. This valuation disparity is across the board including sectors like Information Technology, Industrials, Financials, and Consumer Discretionary. The report noted that while mega-cap companies may be overpriced, numerous bargains exist within the small-cap universe across diverse industries. These attractive valuations provide a compelling case for small-cap stocks to regain market leadership. READ ALSO: and . Moreover, earnings growth prospects further enhance the case for small caps. Consensus estimates for 2025 project an 89.3% earnings-per-share growth for the Russell 2000 index compared to 30.9% for the Russell 1000 index. The CEO and CIO of Royce Investment highlighted that while this rebound partly reflects recovery from a two-year earnings recession in small-caps, it underscores their potential for significant growth. Investors should focus on an investment approach that focuses on companies with established earnings histories or clear catalysts for future earnings growth. The report acknowledged that external factors like tariffs and de-globalization trends may create short-term disruptions. However, the fund sees these developments as opportunities for the US-focused small-cap companies to benefit from reshoring and improved supply chain management. The firm welcomes volatility as it often distracts investors from fundamentals, creating opportunities for active managers to identify undervalued companies with strong long-term prospects. To compile the list of the 10 worst affordable stocks to buy under $10 we used the Finviz stock screener, Seeking Alpha, and Yahoo Finance. Using the screener we aggregated a list of stocks trading under $10 with a Fwd P/E under 15 and earnings growth expectations this year. Next, we cross-checked the Fwd P/E and earnings growth for each stock from Seeking Alpha and Yahoo Finance. Lastly, we selected the least popular stocks among hedge funds and listed them in descending order of the number of hedge funds that hold stakes in them, as of Q4 2024. Please note that the data was recorded on March 26, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up on several cans of freshly brewed beer in a commercial brewery. Ambev S.A. (NYSE:ABEV) is an international beverage company engaged in the production, distribution, and sale of beer, carbonated soft drinks, and other non-alcoholic and non-carbonated beverages across the Americas. The company faced significant challenges in 2024, including tax headwinds in Brazil and economic difficulties in Argentina. However, it managed to deliver better-than-expected financial results through disciplined cost management, strategic pricing, and operational efficiency. Ambev S.A. (NYSE:ABEV) grew its organic EBITDA by 11.4% (12.1% excluding Argentina), reflecting strong operational performance despite tax pressures. However, the normalized profits declined by 2.3%, primarily due to a nearly R$3.5 billion impact from reduced tax deductibility in Brazil, which increased the effective tax rate. On the other hand, if we look at the 5-year performance of the company. It has grown its consolidated EBITDA by 37%, with double-digit growth and margin expansion across all business units for two consecutive years. Ambev S.A. (NYSE:ABEV) ranks as one of the worst affordable stocks to buy under $10 and was held by 22 hedge funds in Q4 2024. Overall, ABEV ranks 5th on our list of worst affordable stocks to buy under $10. While we acknowledge the potential of ABEV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ABEV but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
21-04-2025
- Business
- Yahoo
Is Integra Resources Corp. (ITRG) the Best Rising Penny Stock to Buy According to Analysts?
We recently published a list of the . In this article, we are going to take a look at where Integra Resources Corp. (NYSEAMERICAN:ITRG) stands against other best rising penny stocks to buy according to analysts. The start of 2025 was characterized by a series of challenges for the US equities across the board. Tariffs, inflationary concerns, the risk of recession, and loss of consumer confidence, all led to the small-cap Russell 2000 Index falling 9.5% and the large-cap Russell 1000 Index falling 4.5%. On April 1, Royce Investment released its fiscal first quarter outlook for small-cap stocks. Francis Gannon, who is the Co-Chief Investment Officer, and Managing Director, noted that while the large-cap outperformed the small-caps, however, this performance was not concentrated among the Magnificent Seven, which has dominated the market previously. This is evident from the fact that the Russell Top 50 Index fell 7.6%, whereas the NASDAQ Composite was down more than 10.3%. Gannon highlighted that while the small-cap stocks underperformed the large caps, however, the divergence from the Mag Seven is a positive trend for the small-cap stocks. He noted that historically speaking the broadening of the market away from the top few stocks has meant good things for the small caps in the long term. Moreover, while dissecting the performance of small-cap equities during the downturn, Gannon noted that the Russell 2000 Value Index held better as compared to the Russell 2000 Growth Index. The small-cap value stocks have outperformed the growth counterparts over 1 and 5-year comparisons. However, when looked up from a 10-year standpoint the performance for both categories remains the same. Gannon further pointed out that during the first quarter of 2025, the biggest detractors of the Index were Information Technology, Industrials, Health Care, and Consumer Discretionary, while Utilities was the only positive contributor. Lasty, Gannon shared his experience of being a small-cap investment strategist for over 50 years. He highlighted it is still too early to tell if the first quarter drop for small-cap stocks was only short-term or indicates a long-term period of falling, however, he noted that corrections are common for the small-cap investors. Gannon advised investors to learn to be greedy when others are fearful and vice versa if they are interested in small caps. Moreover, looking at the stocks from a valuation standpoint, small caps remain largely undervalued as compared to large caps and Gannon advised the key to tackling periods of uncertainty is to remain invested. To compile the list of the 10 best-rising penny stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener, we aggregated the list of penny stocks (trading between $1 and $5) with more than 30% share price appreciation over the past month, and more than 30% average upside potential. Lastly, we sorted the list by market capitalization and ranked the stocks in ascending order of the number of hedge funds sourced from Insider Monkey's Q4 2024 database. Please note that the data was collected on April 17, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An aerial view of a vast mining project in a remote area of a landscape. Integra Resources Corp. (NYSEAMERICAN:ITRG) is a precious metal mining company engaged in the production of gold and silver. The company's principal operating asset is the Florida Canyon Mine in Nevada. Moreover, it is also developing the DeLamar Project in southwestern Idaho and the Nevada North Project in western Nevada. On April 4th, Raymond James analyst Brian MacArthur raised the price target for the stock from C$3.25 to C$3.75 and maintained an Outperform rating. One of the reasons behind the upgrade is the updated commodity price forecast by the firm. Raymond James anticipates an increase in gold and silver prices in the near and long term, which considering the higher reserve and resource pricing of Integra Resources Corp. (NYSEAMERICAN:ITRG) is expected to benefit the company. Moreover, the company reported record gold production in fiscal 2024, which reached 72,229 ounces, exceeding the guidance. As a result, the net income for the fourth quarter alone came in at $9.5 million. It is one of the best-rising penny stocks to buy according to analysts. Overall, ITRG ranks 7th on our list of best rising penny stocks to buy according to analysts. While we acknowledge the potential of ITRG to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ITRG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
20-04-2025
- Business
- Yahoo
Is Regulus Therapeutics Inc. (RGLS) the Best Rising Penny Stock to Buy According to Analysts?
We recently published a list of the . In this article, we are going to take a look at where Regulus Therapeutics Inc. (NASDAQ:RGLS) stands against other best rising penny stocks to buy according to analysts. The start of 2025 was characterized by a series of challenges for the US equities across the board. Tariffs, inflationary concerns, the risk of recession, and loss of consumer confidence, all led to the small-cap Russell 2000 Index falling 9.5% and the large-cap Russell 1000 Index falling 4.5%. On April 1, Royce Investment released its fiscal first quarter outlook for small-cap stocks. Francis Gannon, who is the Co-Chief Investment Officer, and Managing Director, noted that while the large-cap outperformed the small-caps, however, this performance was not concentrated among the Magnificent Seven, which has dominated the market previously. This is evident from the fact that the Russell Top 50 Index fell 7.6%, whereas the NASDAQ Composite was down more than 10.3%. Gannon highlighted that while the small-cap stocks underperformed the large caps, however, the divergence from the Mag Seven is a positive trend for the small-cap stocks. He noted that historically speaking the broadening of the market away from the top few stocks has meant good things for the small caps in the long term. Moreover, while dissecting the performance of small-cap equities during the downturn, Gannon noted that the Russell 2000 Value Index held better as compared to the Russell 2000 Growth Index. The small-cap value stocks have outperformed the growth counterparts over 1 and 5-year comparisons. However, when looked up from a 10-year standpoint the performance for both categories remains the same. Gannon further pointed out that during the first quarter of 2025, the biggest detractors of the Index were Information Technology, Industrials, Health Care, and Consumer Discretionary, while Utilities was the only positive contributor. Lasty, Gannon shared his experience of being a small-cap investment strategist for over 50 years. He highlighted it is still too early to tell if the first quarter drop for small-cap stocks was only short-term or indicates a long-term period of falling, however, he noted that corrections are common for the small-cap investors. Gannon advised investors to learn to be greedy when others are fearful and vice versa if they are interested in small caps. Moreover, looking at the stocks from a valuation standpoint, small caps remain largely undervalued as compared to large caps and Gannon advised the key to tackling periods of uncertainty is to remain invested. To compile the list of the 10 best-rising penny stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener, we aggregated the list of penny stocks (trading between $1 and $5) with more than 30% share price appreciation over the past month, and more than 30% average upside potential. Lastly, we sorted the list by market capitalization and ranked the stocks in ascending order of the number of hedge funds sourced from Insider Monkey's Q4 2024 database. Please note that the data was collected on April 17, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A factory worker in a hard hat operating a machine, symbolizing the preclinical drug production process. Regulus Therapeutics Inc. (NASDAQ:RGLS) is another clinical-stage pharmaceutical company that engages in the development of medicines that target microRNAs to treat various unmet medical conditions. Its key focus area includes Orphan Kidney Disease with Farabursen being its main drug candidate. On March 31, Leerink Partners analyst Joseph Schwartz reiterated a Buy rating on Regulus Therapeutics Inc. (NASDAQ:RGLS). The analyst noted that the company's lead drug candidate for treating ADPKD showed positive results in the fourth cohort of the phase 1b study. The results indicate that the drug is effective in curbing the growth of height-adjusted total kidney volume. Moreover, Schwartz also likes the company's engagement with the FDA which topped with the positive results points towards speedy approvals. Considering these positive factors, analysts anticipate more than 284% upside for the stock, making it the best-rising penny stock to buy according to analysts. Overall, RGLS ranks 1st on our list of best rising penny stocks to buy according to analysts. While we acknowledge the potential of RGLS to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RGLS but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
20-04-2025
- Business
- Yahoo
Is Integra Resources Corp. (ITRG) the Best Rising Penny Stock to Buy According to Analysts?
We recently published a list of the . In this article, we are going to take a look at where Integra Resources Corp. (NYSEAMERICAN:ITRG) stands against other best rising penny stocks to buy according to analysts. The start of 2025 was characterized by a series of challenges for the US equities across the board. Tariffs, inflationary concerns, the risk of recession, and loss of consumer confidence, all led to the small-cap Russell 2000 Index falling 9.5% and the large-cap Russell 1000 Index falling 4.5%. On April 1, Royce Investment released its fiscal first quarter outlook for small-cap stocks. Francis Gannon, who is the Co-Chief Investment Officer, and Managing Director, noted that while the large-cap outperformed the small-caps, however, this performance was not concentrated among the Magnificent Seven, which has dominated the market previously. This is evident from the fact that the Russell Top 50 Index fell 7.6%, whereas the NASDAQ Composite was down more than 10.3%. Gannon highlighted that while the small-cap stocks underperformed the large caps, however, the divergence from the Mag Seven is a positive trend for the small-cap stocks. He noted that historically speaking the broadening of the market away from the top few stocks has meant good things for the small caps in the long term. Moreover, while dissecting the performance of small-cap equities during the downturn, Gannon noted that the Russell 2000 Value Index held better as compared to the Russell 2000 Growth Index. The small-cap value stocks have outperformed the growth counterparts over 1 and 5-year comparisons. However, when looked up from a 10-year standpoint the performance for both categories remains the same. Gannon further pointed out that during the first quarter of 2025, the biggest detractors of the Index were Information Technology, Industrials, Health Care, and Consumer Discretionary, while Utilities was the only positive contributor. Lasty, Gannon shared his experience of being a small-cap investment strategist for over 50 years. He highlighted it is still too early to tell if the first quarter drop for small-cap stocks was only short-term or indicates a long-term period of falling, however, he noted that corrections are common for the small-cap investors. Gannon advised investors to learn to be greedy when others are fearful and vice versa if they are interested in small caps. Moreover, looking at the stocks from a valuation standpoint, small caps remain largely undervalued as compared to large caps and Gannon advised the key to tackling periods of uncertainty is to remain invested. To compile the list of the 10 best-rising penny stocks to buy according to analysts, we used the Finviz stock screener and CNN. Using the screener, we aggregated the list of penny stocks (trading between $1 and $5) with more than 30% share price appreciation over the past month, and more than 30% average upside potential. Lastly, we sorted the list by market capitalization and ranked the stocks in ascending order of the number of hedge funds sourced from Insider Monkey's Q4 2024 database. Please note that the data was collected on April 17, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An aerial view of a vast mining project in a remote area of a landscape. Integra Resources Corp. (NYSEAMERICAN:ITRG) is a precious metal mining company engaged in the production of gold and silver. The company's principal operating asset is the Florida Canyon Mine in Nevada. Moreover, it is also developing the DeLamar Project in southwestern Idaho and the Nevada North Project in western Nevada. On April 4th, Raymond James analyst Brian MacArthur raised the price target for the stock from C$3.25 to C$3.75 and maintained an Outperform rating. One of the reasons behind the upgrade is the updated commodity price forecast by the firm. Raymond James anticipates an increase in gold and silver prices in the near and long term, which considering the higher reserve and resource pricing of Integra Resources Corp. (NYSEAMERICAN:ITRG) is expected to benefit the company. Moreover, the company reported record gold production in fiscal 2024, which reached 72,229 ounces, exceeding the guidance. As a result, the net income for the fourth quarter alone came in at $9.5 million. It is one of the best-rising penny stocks to buy according to analysts. Overall, ITRG ranks 7th on our list of best rising penny stocks to buy according to analysts. While we acknowledge the potential of ITRG to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ITRG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
