As interest rates rise and inflation wreaks havoc on the growth market, value equities have taken center stage. Micro-cap value equities have outperformed larger corporations in recent years, according to research. Over the same time span, the US Private Equity Index increased by about 716 percent, compared to a 740 percent increase in the CRSP Equal Weighted Microcap Index. Between 1995 and 2020, both indices exceeded the benchmark S&P 500, which returned 255 percent. Micro-cap stocks are appealing for a variety of reasons. Many investors are scared off by the price volatility commonly associated with smaller enterprises. Micro-caps are expected to return 51 percent over the next decade, according to the Dow Jones Select Micro-Cap Index, compared to 51 percent for larger corporations.
Insider Monkey picked the best micro-cap stocks to buy according to hedge funds. IBEX Limited reported earnings for the second fiscal quarter of 2022, with $0.27 earnings per share and $132 million in revenue, up 12% year over year. A $20 million share repurchase program was just approved by the company. Huttig Building Products, Inc. manufactures and sells wood and building supplies. The company reported profitability for the fourth quarter of 2021, citing revenue of more than $230 million, up about 25% from the same period the previous year. First Western Financial, Inc. is a financial holding corporation based in Colorado. The company has 18 profit centers, most of which are located in Colorado and Arizona. The company combined with Teton Financial Services, Rocky Mountain Bank’s parent company, last year. Drive Shack Inc. owns and operates golf resorts in nine states, with a total of 55 facilities. Firm reported earnings for the fourth quarter of 2021, exceeding analyst estimates by $0.01 and $1 million, respectively, on earnings per share and revenue. Ikena Oncology, Inc. is a focused oncology company. The company focuses on the development of treatments for medical conditions that are currently unmet. Earnings for the fourth quarter of 2021 were $0.59 and $15 million higher than expected. For more details, click the 10 Best Micro-Cap Stocks To Buy According To Hedge Funds.
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