Anyone looking for companies trading for cheap valuations relative to their earnings and long-term growth potential would do well to expand the search to small investments, which seem much more appealing right now than their large-cap counterparts.
“While large and mid-caps trade at a 35%-40% premium to history, small caps now trade in-line with history,” said Jill Carey Hall, equity and quant strategist for BofA Securities. “In addition to being the least expensive, they are also a better diversifier. … While asset class returns grew more correlated vs. 20 years ago, the [small-cap] Russell 2000 is less correlated with other asset class returns on average than the Russell MidCap or S&P 500 both over the last three years and the last few decades.”
Today we’ve got two small-cap recommendations that are priced just right.
Recommendation #1
TransGlobe Energy Corporation (TGA)
- Market Cap 233.76M
- Price/ Earnings 7.6
- US Oil and Gas Industry avg. P/E 16.3
Recommendation #2
The Pacer US Small Cap Cash Cows 100 ETF (CALF)
- Net Assets 619.59M
- Price/ Book 2.83
- Expense Ratio 0.59%
- Yield 0.51%
Where to invest $1,000 right now...
Before you consider buying TransGlobe, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not TransGlobe.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
