Total S&P 600 earnings for Q1 are expected to be down 41.5% from the same period last year on 4% lower revenues. However, these sectors show better earnings prospects.
Extension of paycheck protection program, some forgivable loans, stronger dollar and the talks of reopening of the economy should support the small-cap ETFs.
After a painful stretch, small-cap U.S. stocks should rebound on a few tailwinds.
Small-Cap ETFs have picked up momentum of late. Is it a reflection of the pre-January Effect?
Total S&P 600 earnings for Q3 are expected to be down 19.5% from the same period last year on 3.6% higher revenues. However, these sectors outperformed.
The beaten down prices coupled with a combination of factors seem a solid entry point for investors seeking to invest in small-cap space.
Albeit the Q2 earnings season reflects a bumpy ride for small-cap stocks, a few sectors offer better growth rates, putting the related ETFs under the spotlight.
Earnings of the S&P 600 are down 18.3% year over year so far on 3.1% revenue growth, with 57.1% beating EPS estimates and 56.3% surpassing top-line expectations.