Nordstrom, Boston Beer on Morningstar List of Top Small-Cap Stocks

The Russell 2000 index of small-cap stocks has dropped 22% this year, and that may have created some buying opportunities.

Small-cap stocks began May about 21% undervalued, compared with 12% for large-cap stocks, according to Morningstar’s measures. 

“Given that small-company stocks have underperformed large-company stocks so far this month, small companies as a group remain the better bargains today,” wrote Susan Dziubinski, director of content for Morningstar.

“We encourage long-term investors interested in small-cap stocks today to favor significantly underpriced stocks of small companies with economic moats.”

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