Small-cap stocks are public companies that have market caps ranging from $300-M to 2-B. Since the share prices of these companies can be very volatile, some companies in the small-cap universe, or in small-cap indexes, can have market caps significantly higher than this range at any particular time.
Some of the stocks classified as small caps are movie theater chain AMC Entertainment Holdings Inc. (AMC), printing, imaging company Eastman Kodak Co. (KODK), and retail drug store chain Rite Aid Corp. (RAD)
Small-cap stocks, as represented by the Russell 2000 Index (RUT), have outperformed the broader market, providing investors with a total return of 49.2% compared to the Russell 1000’s total return of 39.4% over the past 12 months.
These market performance numbers and the statistics in the tables below are as of 27 July 2021.
These are the small-cap stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows investors pay less for each USD of profit generated.
|Best Value Small-Cap Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|California Resources Corp. (CRC)||27.09||2.3||0.6|
|Dynex Capital Inc. (DX)||17.44||0.5||1.1|
|Hovnanian Enterprises Inc. (HOV)||93.22||0.6||1.2|
- California Resources Corp.: California Resources is an Crude Oil and Nat Gas exploration and production (E&P) company with operations in California. It produces crude oil, natural gas, and natural gas liquids (NGL). It also operates a power plant that generates electricity from Nat Gas.
- Dynex Capital Inc.: Dynex Capital is a real estate investment trust (REIT) that invests in mortgage loans and securities on a leveraged basis. It has investments in both residential and commercial securitized mortgage loans.
- Hovnanian Enterprises Inc.: Hovnanian Enterprises is a homebuilding company. It designs, constructs, and markets a variety of for-sale housing in residential communities in 14 states. The company announced in early June financial results for Q-2 of its Y 2021 FY, the 3 month frame ended 30 April 2021. Net income rose to $488.7-M from $4.1-M in the year-ago quarter as revenue rose 30.6%. Net income was primarily boosted by $457.6-M worth of state and federal income tax benefits.
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