Russell 2000 Rallies To 16-Month Highs: Best Performing Small-Cap Stocks Popping Over 80% In December
Portfolio Pulse from Piero Cingari
The Russell 2000 index, tracked by the iShares Russell 2000 ETF (IWM), has hit a 16-month high, outperforming large-cap indices in December with an 11.4% surge. Over 80% of the small-cap stocks in the index are trading above their 50-day moving averages, indicating broad strength. In contrast, the SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), and Invesco QQQ Trust (QQQ) saw smaller gains. Top gainers in the Russell 2000 include EyePoint Pharmaceuticals (EYPT), Hawaiian Holdings (HA), Altimmune (ALT), 2seventy bio (TSVT), Aurora Innovation (AUR), Carvana (CVNA), Purple Innovation (PRPL), Marathon Digital Holdings (MARA), MBIA (MBI), and Century Therapeutics (IPSC).
December 19, 2023 | 10:05 pm
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NEUTRAL IMPACT
The SPDR Dow Jones Industrial Average ETF (DIA) also experienced a modest 3.9% increase in December, lagging behind the Russell 2000's performance.
DIA's modest gains compared to the Russell 2000's rally may not significantly impact its short-term performance, as it represents a different market segment.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Invesco QQQ Trust (QQQ) tracking the Nasdaq 100 index is up by 5.5% in December, less than half the gain of the Russell 2000.
Although QQQ has seen growth, its performance is overshadowed by the Russell 2000's rally, which may lead to a neutral short-term impact as it caters to a different investor base.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a modest increase of 3.9% in December, underperforming compared to the Russell 2000.
SPY's underperformance relative to small-cap stocks may lead to a neutral short-term impact as investors could rebalance portfolios but large-cap stocks still hold long-term appeal.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Altimmune, Inc. (ALT) has climbed 151.90% in December, marking it as one of the best performing small-cap stocks.
ALT's significant price increase could continue to attract investor attention, potentially leading to further gains in the short term.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
POSITIVE IMPACT
EyePoint Pharmaceuticals (EYPT) is the top performer in the Russell 2000 for December, with a staggering 218.40% price increase.
EYPT's dramatic rise in stock price reflects strong investor sentiment and could lead to continued momentum in the short term, given its standout performance.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Hawaiian Holdings (HA) has seen a significant 202.45% increase in its stock price in December, ranking it among the top gainers.
HA's substantial stock price increase indicates strong market performance, which could attract more investor interest in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) has reached a 16-month high due to a broad rally in small-cap stocks, with an 11.4% increase in December.
The significant outperformance of the Russell 2000 index suggests increased investor confidence in small-cap stocks, which could lead to continued inflows into IWM in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100