Smaller companies have enjoyed a good run over the past 12 months, according to Susan Dziubinski, director of content at Morningstar.com.
During that period, the Morningstar US Small Cap Index has outperformed the Morningstar US Large Cap Index by more than 8 percentage points.
But smaller companies’ returns over the trailing three-year period suggest that they may still have room to run, as they lag their large-cap counterparts by more than 9 points in that time frame, Dziubinski wrote in a recent blog post.
Not only that, the average small-cap stock Morningstar covers is about fairly valued, while the average large-cap stock is overpriced by some 8%, she said.
See the gallery for the 19 small-caps that made the cut.
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