Small Cap Analysis https://www.benzinga.com/views/taxonomy/term/42 en A New Way To Minimize Small-Cap Volatility https://www.benzinga.com/trading-ideas/long-ideas/19/10/14624303/a-new-way-to-minimize-small-cap-volatility <p>Over the long haul, small-cap stocks outperform their large-cap peers. Over the past 20 years, the widely followed Russell 2000 Index has delivered average annualized returns of 6.6% compared to 4.6% for the Russell 1000, but volatility has been higher for the small-cap Russell 2000.</p> <p>&ldquo;And while US small cap returns look relatively good for investors in hindsight over the past two decades, these returns have come with much higher relative volatility,&rdquo; <a href="https://www.ftserussell.com/blogs/defining-moment-us-small-cap-stocks">according to FTSE Russell</a>. &ldquo;The Russell 2000 had a 19.5% annualized standard deviation over the last 20 years as compared to 14.8% for the Russell 1000 and the Russell 2000 had a maximum drawdown of 54%.&rdquo;</p> <p><a href="http://www.innovatoretfs.com/">Innovator Capital Management, LLC</a>, the exchange traded funds ...</p><p><a href=https://www.benzinga.com/trading-ideas/long-ideas/19/10/14624303/a-new-way-to-minimize-small-cap-volatility alt=A New Way To Minimize Small-Cap Volatility>Full story available on Benzinga.com</a></p> KOCT Long Ideas Russell 2000 Index Broad U.S. Equity ETFs Specialty ETFs New ETFs Small Cap Analysis Top Stories Trading Ideas ETFs KOCT Long Ideas Broad U.S. Equity ETFs Specialty ETFs Small Cap Analysis New ETFs Top Stories Trading Ideas ETFs Benzinga Mon, 21 Oct 2019 15:30:51 +0000 ETF Professor 14624303 at https://www.benzinga.com Community Banks Are 'Cash Flow Machines' And Other Takeaways From The OTCQX Community Bank Conference https://www.benzinga.com/trading-ideas/long-ideas/19/10/14548452/community-banks-are-cash-flow-machines-and-other-takeaways-from-the-otcqx-community-bank <p>&ldquo;In reasonable economic times community banks are pretty much cash flow machines,&rdquo; according to Tim Melvin, author of The<a href="https://marketfy.com/item/banking-on-profit-monthly-newsletter/"> Community Bank Investor Newsletter</a> and<a href="https://marketfy.com/item/banking-on-profit/"> Banking On Profit</a>.</p> <p>Melvin made that remark at the <a href="https://www.virtualinvestorconferences.com/events/event-details/financial-services-conference-september-2019?utm_source=Benzinga%20Article%20Post&amp;utm_medium=Media&amp;utm_campaign=September%2026%202019%20Post">OTCQX Community Bank Virtual Investor Conference</a> held in late-September, where he outlined his bullish thesis on community bank stocks. Melvin&rsquo;s opinion hinges on several factors, including lessened industry regulations and the fact that many smaller banks trade at relative discounts to larger financial institutions.</p> <p>His main reason for optimism comes down to consolidation in the industry. According to Melvin there are approximately 5,000 community banks and thrifts in the U.S., down from around 18,000 in the mid-80&rsquo;s when states began passing legislation allowing for the formation of regional banks. Once banks were emboldened to expand into other states, it became more convenient to simply buy existing banks than build entirely new ones.</p> <p>Melvin estimates that about 4% of community banks get taken over every year&mdash;the vast majority at a premium to shareholders&mdash;and he expects that trend to continue until the number of community banks falls below 2,000.</p> <p>Melvin said he prefers buying Small-Cap community banks that:</p> <ul> <li>Trade below its tangible book value per share</li> <li>Have high dividend yields and low P/E ratios</li> <li>Have higher earnings growth rates than their peers in the last three years</li> </ul> <p>There are 67 banks in the OTCQX Banks Index, which is up approximately 8% in 2019. Ten of them presented at the OTCQX Virtual Conference last month (which you can&nbsp;view <a href="http://www.virtualinvestorconferences.com/events/event-details/financial-services-conference-september-2019?utm_source=Benzinga%20Article%20Post&amp;utm_medium=Media&amp;utm_campaign=September%2026%202019%20Post">on demand here</a>). Here&rsquo;s a breakdown of each.</p> <p><strong>CNB Bank Shares, Inc.</strong> (OTCQX: <a class="ticker" href="https://www.benzinga.com/stock/cnbn#OTCQX">CNBN</a>)<br /> <strong>Location:</strong> Carlinville, ...</p><p><a href=https://www.benzinga.com/trading-ideas/long-ideas/19/10/14548452/community-banks-are-cash-flow-machines-and-other-takeaways-from-the-otcqx-community-bank alt=Community Banks Are &#039;Cash Flow Machines&#039; And Other Takeaways From The OTCQX Community Bank Conference>Full story available on Benzinga.com</a></p> Banking On Profit BFCC CFST CNBN community banks CYSM FBAK financials GNRV HLAN Long Ideas News OCBI otc markets OTCQX PSBQ Tim Melvin Virtual Investor Conferences VTYB Small Cap Analysis Small Business Markets Trading Ideas General FBAK US32112J1060 GNRV PSBQ OCBI CYSM HLAN CFST VTYB CNBN BFCC Long Ideas News Small Cap Analysis Small Business Markets Trading Ideas General Benzinga Thu, 10 Oct 2019 14:45:54 +0000 Spencer Israel 14548452 at https://www.benzinga.com 3 Value Investing ETFs Worth Considering https://www.benzinga.com/etfs/broad-u-s-equity-etfs/19/10/14546672/3-value-investing-etfs-worth-considering <p>Three value investing <a href="https://www.benzinga.com/money/best-etfs/">ETFs</a> worth considering now offer opportunities for exposure to small-cap stocks that have the potential to outperform large- and mid-cap funds.</p> <p>The three value investing ETFs worth considering give investors ways to zero in on the book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio in the first fund, momentum with the second one and dividends with the third. Small-cap value stocks typically grow more slowly than average companies, but they still can achieve strong returns and offer reduced risk compared to similar-sized growth stocks.</p> <h3><strong>Invesco S&amp;P SmallCap 600 Pure Value ETF (RZV)</strong></h3> <p>The <strong>Invesco S&amp;P SmallCap 600 Pure Value ETF</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rzv#NYSE">RZV</a>) tracks a fundamentally weighted index of U.S.-listed small-cap value companies. RZV provides a unique take on small- and micro-cap value exposure by focusing on undervalued stocks represented in the index it tracks.</p> <p>Investors should beware that the fund&rsquo;s holdings of various sizes and sectors heighten its market risk. As a result, investors interested in this high-beta play on small-cap value stocks also should expect higher transaction costs than the norm due to a modest daily volume (the number of total shares traded in each day for one stock) and sizable spreads between the bid and ask prices.</p> <p><strong id="docs-internal-guid-0c621726-7fff-e774-7ac7-e5074b9f5308"><img src="https://lh6.googleusercontent.com/FQ7P5VHWQGh2EF1cekKRu6pC8JX1bTCeY1WE0j1FsbAAnGszS1r5jpnWK0MOCVM_9HRk06OcPSlUP_2iWNiNBQdQqj5IA8dAquSBomyHkjRHWMXZHL4OBXcTaFR9ZtU6XUE-gG2E70Aakc-g8Q" style="height:284px; width:460px" /></strong></p> <p><em>Chart Courtesy of StockCharts.com</em></p> <p>Even so, RZV replicates its index efficiently. The fund invests at least 90% of its total assets in securities that comprise the Index, which measures the performance of small-cap equities that exhibit strong value characteristics in the S&amp;P SmallCap 600 Pure Value Index.</p> <p>This fund performed weakly in 2017 and struggled in 2018 as its total return rose 1.24% in 2017 and plunged 19.65% in 2018, according to Morningstar. Year to date, the fund&rsquo;s return has risen 7.64%. The variation in its returns shows the fund&rsquo;s volatility and the need for investors to be comfortable enduring such wide swings.</p> <p>RZV&rsquo;s value is measured by risk factors such as a stock&rsquo;s book value-to-price ratio, earnings-to-price ratio and sales-to-price ratio. The fund and the Index are rebalanced annually.</p> <p>The top RZV sectors include consumer cyclical, basic materials, industrials, technology and consumer defensive. Among the fund&rsquo;s top 10 holdings, accounting for 19% of its portfolio, are <strong>Sonic Automotive Class A </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sah#NYSE">SAH</a>), <strong>William Lyon Homes</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wlh#NYSE">WLH</a>), <strong>Group 1 Automotive Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gpi#NYSE">GPI</a>), <strong>Ultra Clean Holdings Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/uctt#NASDAQ">UCTT</a>), <strong>Griffon Corp. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gff#NYSE">GFF</a>), <strong>M/I Homes Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mho#NYSE">MHO</a>), <strong>Hibbett Sports Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hibb#NASDAQ">HIBB</a>), <strong>Meritage Homes Corp.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mth#NYSE">MTH</a>), <strong>Century Communities Inc. </strong>(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ccs#NYSE">CCS</a>) ...</p><p><a href=https://www.benzinga.com/etfs/broad-u-s-equity-etfs/19/10/14546672/3-value-investing-etfs-worth-considering alt=3 Value Investing ETFs Worth Considering>Full story available on Benzinga.com</a></p> AEL CCS DGRS ERA FUL GFF GMS GPI GRC HI HIBB INTL MATW MGRC MHO MSEX MTH ODP RZV SAH SENEA SMDV SPTN TTMI UCTT UHT VRTV VSI WLH XSVM Broad U.S. Equity ETFs Small Cap Analysis Technicals Trading Ideas ETFs GRC US3830821043 RZV US78355W7002 HIBB US4285671016 MATW US5771281012 MGRC US5805891091 MSEX US5966801087 SENEA US8170705011 SPTN US8468221044 TTMI US87305R1095 UCTT US90385V1070 AEL US0256762065 FUL US3596941068 GFF US3984331021 GMS GPI US3989051095 MHO US55305B1017 MTH US59001A1025 ODP US6762201068 SAH US83545G1022 UHT US91359E1055 VSI US92849E1010 INTL US46116V1052 HI US4315711089 ERA WLH DGRS CCS VRTV SMDV XSVM Broad U.S. Equity ETFs Small Cap Analysis Technicals Trading Ideas ETFs Benzinga Mon, 07 Oct 2019 20:15:07 +0000 Jim Woods Investing 14546672 at https://www.benzinga.com