It has been a tough year thus far for small-cap stocks, but Bank of America has some fresh ideas for finding value in the space.
Despite a bounce this month, the Russell 2000 index of small-cap stocks has slipped a fraction this year while the large-cap S & P 500 has climbed almost 7%.
Against that underperformance, Bank of America strategist Jill Carey Hall recently screened for small-cap value names with strong fundamentals.
She scanned the Russell 2000 for profitable stocks that are in the top 20th percentile on one or more valuation metrics, including price-to-book, price-to-earnings and enterprise value-to-sales ratios.
The stock placed within the top 20% of the Russell 2000 when looking at the enterprise value to sales ratio.
Persons:
Russell, Jill Carey, Wall, FactSet, Ryan Sigda, Craig, Hallum, Visteon
Organizations:
Bank of America, of, TAM, Outfitters, Urban Outfitters, Urban, Automotive, Wall
Locations:
Michigan