The small cap stocks had a good November with the Russell 2000 index this week hitting a new 52-week peak — higher than the earlier-in-the-month high. This price action puts it into the “outperform” class vis a vis, for example, the Nasdaq 100 and, for another example, the healthcare sector (NYSE: XLV).
It might be that stock buyers have entered the feverish, speculative stage of the investment cycle and that this leads them to the smaller capitalized names thought to represent growth and gains. Whatever the case, these four on Friday’s low volume session were trading more actively than any of the others.
4 Small Caps Actively Traded.
Marathon Digital Holdings.
The new high on Friday at just above $30 represents a breakout above the July $27 former resistance.
Marathon Digital is involved in the mining of cryptocurrencies and related activities. EPS this year is off by 102% but, over the past five years, is up by 138%. The debt-to-equity ratio is .o2. Market cap is $8.99 billion.
Kohl’s.
The retail stores chain has dropped from $27 in May to the current price of $14.97 for a then-to-now loss of 44%.
This year’s earnings are down by 54% and down by 10% over the past five years. Kohl’s has a debt-to-equity ratio of 2. Market capitalization is $1.69 billion. The estimated dividend is 13.56% with an ex-date of December 11.
Hims and Hers Health.
The November new high of $35 is way up from the May low of just above $11. Earnings this year for the household and personal products company are up by 824%. There is no 5-year EPS record since the company has not been around that long. The debt-to-equity ratio is .03. Market cap is $7.48 billion.
Wolfspeed.
The stock hit a new low this month after steadily down trending since the June high or just under $31.
Wolfspeed is a semiconductor company with a market cap of $1.31 billion. Earnings this year are down by 38% and down over the past five years by 18%. The debt-to-equity ratio is 10. It trades at about 2 times book value with no price-earnings ratio since there are no earnings.
The iShares Russell 2000 ETF:
It’s known around Wall Street as the “small cap fund” because this is where money managers go to see how those types of stocks are doing. Consisting of 2000 components, the top five sectors are financials, industrials, healthcare, information technology and consumer discretionary.
The ETF hit a new high in late November, going even higher than during the post-election surge of earlier in the month.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.