These small-cap stocks will lead the market if the rally has legs

These small-cap stocks will lead the market if the rally has legs
·7 min read

If stock market FOMO is starting to bug you, but you’re hesitant to buy stocks, here’s a fix: Go small. The Russell 2000 Index (RUT) which tracks smaller companies, recently traded at a forward price-to-earnings (P/E) of 12.4. Put another way, the relative forward P/E of the Russell 2000 is 0.71 time the Russell 1000 forward P/E, below its average of 1.01 times.