

While smaller companies outperformed in late 2020 and early 2021 as part of the economic recovery and reopening trade, they've fallen off recently as investors have grown fearful about the COVID Delta variant and the pace of growth.Įarlier in August, the small-cap Russell 2000 completed a 10% sell-off, or "correction," from its March high. It might also be an opportune moment for investing in small caps, at least for investors who think the US economy will stay reasonably strong. Analysts at RBC chose from companies that are valued at $5 billion or less and have reasonably liquid stocks based on their average daily trading value to build their list. The 13 stocks on RBC's list are all rated "Outperform" by the firm's analysts and they offer "either an attractive normalized growth story or strong durable growth characteristics," the firm writes.


That might help investors get through any difficulty they encounter in September and make it to the last three months of the year, when stock market returns are typically strong. Luckily, RBC's analysts recently remade their US Small Cap Growth Idea List, adding six new entries that they think have upside of 20% or more. Historically, stock indexes do worse in September than they do in any other month, so it might be a good time for new ideas. See more stories on Insider's business page.Īhead of the worst month of the year for investing, analysts at RBC are updating their best small-cap stock ideas.Tech and biopharma dominate the list, and RBC explains why these names stand out.Their picks include 13 "Outperform" rated companies with upside ranging from 20% to 130%.RBC analysts just updated their list of their favorite small-cap stock ideas.
