Small Company Stocks will Outperform the Market in 2024, Survey Finds
April 17 2024 - 8:18AM
Seventy-five percent of investors say small public company stocks
will outperform most major stock indexes in 2024, according to
results of the 2024 Small Public Company Investor Sentiment Survey,
conducted on behalf of SNN Incorporated, a multimedia financial
news and publishing company, and PondelWilkinson, Inc., an investor
relations and strategic public relations firm.
Of the investors surveyed, 74% say they are investing in
companies valued between $50 and $300 million market
capitalization, while 26% are buying stocks across all sizes.
“Three-quarters of those surveyed expect small public company
stocks to outperform most major stock indexes in 2024, with about
half expecting this stock category to outperform bigger companies
this year,” said Robert Kraft, CEO of SNN Network, parent company
of the Planet MicroCap Showcase being held in Las Vegas April 30 -
May 2.
“While a dichotomy currently exists between those who are
bullish on small public companies and those who are less so, as
indicated by higher gains achieved thus far into 2024 in larger-cap
indexes, investors surveyed view small company stocks as
sought-after investments in 2024 and said they are sticking with
their investment strategies,” Kraft added.
Other key survey findings include:
- Gains: More than half of investors (52%)
expect to increase their small company portfolio in 2024, after one
quarter of responders (27%) reported gains of 20% or more from this
segment in 2023.
- Sector outlook: Technology (27%), natural
resources and energy (19%), and healthcare and biotech (10%)
represent the sectors investors are most bullish about for 2024.
These industry favorites remain unchanged from prior surveys.
- Risk tolerance: Ninety-one percent of
investors have a “moderate- to high-risk” tolerance when investing
in small public companies, 51% and 40%, respectively.
- Buy or sell: Eighty-nine percent of investors
say their general time horizon for holding small public company
stocks is typically long- (more than 6 months) to very long-term
(buy-and-hold), 50% and 39%, respectively.
- Investment benchmarks: Seventy-six percent of
survey respondents say they also are buying small public company
stocks listed outside the U.S. Additionally, survey respondents
cited management teams (38%) as the most important criteria for
investing, followed by profitability (37%) and stock price
(17%).
“As more investors become interested in small company stocks, it
is critical that management teams communicate transparently,
effectively and consistently,” said Roger Pondel, CEO of
PondelWilkinson. “Where companies communicate their value
propositions beyond traditional channels also is important,
especially since the survey revealed a wide range of media that
investors use to identify investing ideas, including social media
platforms and increasingly, select participation at investor
conferences and quality sponsored research.”
About the 2024 Small Public Company Investor
SurveyThe online survey was conducted in December 2023 to
gauge investor sentiment as it pertains to small public companies
valued at $300 million market capitalization and under.
Seventy-seven percent of survey respondents categorize themselves
as individual investors, followed by institutional investors (11%),
family offices (8%) and wealth managers (4%). Four in 10
respondents (42%) have 20+ years of investing experience, followed
by 10+ years (28%), 6-10 years (17%) and 1-5 years (13%).
About SNN IncorporatedSNN Incorporated is a
global multimedia and publishing financial news investor portal
covering the small-, micro- and nano-cap markets by providing news,
insights, education tools and expert commentary. Visit
https://www.youtube.com/@PlanetMicroCap to subscribe to Planet
MicroCap’s YouTube Channel to receive notifications of new CEO
interviews, as well as the latest episodes of the Planet MicroCap
podcast.
About the Planet MicroCap Showcase Hosted by
SNN Inc., the Planet MicroCap Showcase is an annual 3-day event for
the microcap investing community, comprised of company
presentations, 1x1 meetings and educational panels. Click here for
more information or follow Twitter X and YouTube for important
updates.
About PondelWilkinson Founded in 1968,
PondelWilkinson Inc. is a national investor relations and strategic
public relations consultancy. The firm represents a wide range of
publicly traded, pre-public and privately owned companies, from
startups to large caps, and develops programs targeting both Wall
Street and Main Street. For more information, visit www.pondel.com
. Follow PondelWilkinson on X at @PondelWilkinson or LinkedIn.
Media Contact:
George MediciRoger PondelPondelWilkinson Inc.gmedici@pondel.com;
310.279.5968rpondel@pondel.com; 310.279.5965