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Fundamental Analysis

Why Small-Cap Stocks Can Outperform & Key Risks to Know Before Investing in Them

Why Small-Cap Stocks Can Outperform & Key Risks to Know Before Investing in Them

Individual small-cap stocks can oftentimes outperform their large-cap counterparts because small-cap companies tend to be able to grow faster while receiving less analyst coverage. This article covers when small-cap stocks tend to perform well, why they can be good investments, and the key risks investors should consider before adding small-cap stocks to their portfolio. Table …

How to Analyze Small-Cap Stocks | Frameworks & Key Metrics

How to Analyze Small-Cap Stocks | Frameworks & Key Metrics

Small-cap stocks have created some of the biggest winners in stock market history. Legendary investor Peter Lynch focused on finding under-the-radar small-cap stocks to achieve outsized returns because he believed, “The size of a company has a lot to do with how much money you’re going to make on it.” Unlike large-cap stocks, small-caps tend …

5 Red Flags That a Stock Could Be a Value Trap

5 Red Flags That a Stock Could Be a Value Trap

Just because a stock looks cheap doesn’t necessarily mean it’s a bargain. Some stocks look undervalued, but that’s because they’re actually poor businesses that are destined to fail. These stocks are called value traps because they can draw value investors in, but they end up being a trap. This article covers five major red flags …

8 Key Metrics to Find Undervalued Stocks

8 Key Metrics to Find Undervalued Stocks

Finding undervalued stocks isn’t as simple as chasing low P/E ratios or buying stocks just because they’ve dropped in price. The real goal is to find strong, high-quality companies that the market has overlooked. To do this, investors can use a combination of valuation metrics, growth indicators, and financial health measures to separate potential bargains …

How to Find Undervalued Stocks Before the Market Does

How to Find Undervalued Stocks Before the Market Does

The stock market isn’t always rational. Prices swing based on emotions, macroeconomic events, and investor sentiment, which can create opportunities for investors to buy stocks when they’re undervalued. In this article, we’ll talk about how to find undervalued stocks by looking at why stocks typically become undervalued, how to determine if a stock is undervalued, …

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