In 2020, the Russell 2000, a measure for small-cap stocks, returned 20%, compared to 16.33% for the S&P 500. In nine of the last ten recessions, small-cap stocks have outperformed large-cap equities. The Russell 2000’s market capitalization will increase by 84.2 percent to $3.5 trillion in 2021 when contrasted to the Russell 1000, which grew by 49.5 percent.
Insider Monkey analyzes the list of the best small-cap stocks to buy. Eagle Bulk Shipping Inc. is the tenth best small-cap company to purchase on our list. The corporation recently announced its dividend policy, stating that 30 percent of net income will be allocated to dividend payouts. Turning Point Brands, Inc. ranks ninth. The American cigarette firm also announced a quarterly dividend of $0.055 per share, yielding 0.43 percent. Hostess Brands, Inc. is ranked eighth. Hostess Brands rebounded from an all-time low of $10.09 per share in 2020, producing a 30 percent return to shareholders in 2021. The Beauty Health Company ranks eighth. With $106.5 million in shares, Redmile Group is the largest shareholder. Insider Monkey analyzed 33 hedge funds that were positive on the firm in Q2, totaling $665.2 million. Origin Materials, Inc. is the sixth-best small-cap company to purchase on the list. Origin Materials is the world’s largest manufacturer of carbon-negative materials. The company established a partnership with Drive+, a platform that aims to improve sustainability in the automobile industry. For more details, click Best Small-Cap Stocks To Buy.
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