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Are Small Caps a Harbinger of Market Declines?

Kate Stalter
Written by Kate Stalter
May 9, 2023

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. 
  • Interested in iShares Russell 2000 ETF? Here are five stocks we like better.

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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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Kate Stalter
About The Author

Kate Stalter

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Learn More about Kate Stalter
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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
iShares Russell 2000 ETF (IWM)N/A$228.53+1.0%1.11%N/AN/AN/A
Shockwave Medical (SWAV)
2.0286 of 5 stars		$334.75flatN/A78.21Hold$320.50
EMCOR Group (EME)
3.5683 of 5 stars		$449.31+2.3%0.22%22.82Moderate Buy$518.75
Iridium Communications (IRDM)
4.731 of 5 stars		$28.42+0.3%1.97%30.23Moderate Buy$40.75
Saia (SAIA)
2.2366 of 5 stars		$495.00+2.8%N/A35.36Moderate Buy$527.65
Apellis Pharmaceuticals (APLS)
4.7215 of 5 stars		$30.39+3.1%N/A-14.97Moderate Buy$46.71
Inspire Medical Systems (INSP)
4.7081 of 5 stars		$194.38+2.3%N/A181.67Moderate Buy$231.45
Crocs (CROX)
3.2494 of 5 stars		$107.01+2.1%N/A7.76Moderate Buy$146.80
Texas Roadhouse (TXRH)
3.8009 of 5 stars		$182.65+0.3%1.34%31.38Hold$191.26
Kinsale Capital Group (KNSL)
1.8543 of 5 stars		$440.39-0.8%0.14%25.11Hold$468.89
iShares Core S&P 500 ETF (IVV)N/A$607.94+0.5%1.05%25.23N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

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