Back to top

Analyst Blog

On June 13, Echo Therapeutics (ECTE - Snapshot Report), a transdermal medical device company, announced that it anticipates being included in the Russell Microcap Index.

It expects the inclusion on June 25, 2012, when Russell Investments rebalances its set of U.S. indexes. This assumption is based on a preliminary list of additions posted by Russell on June 8, 2012.

Management is enthusiastic about this opportunity as it . The inclusion in the Russell Microcap Index is expected to enhance awareness of the company to a larger number of institutions and investors by increasing the visibility and volume trading of the stock. It will mark a keystone as the Russell Microcap Index is an important weighted index that examines trends in relatively smaller companies. This should also enhance Echo’s shareholder base. The annual recalculation of the Index can be relied upon to avoid any distortion in presenting the performance of Echo Therapeutics.

The Russell Microcap Index is well regarded and proactively used by investment managers as well as institutional investors. It serves as a benchmark for all investment strategies with assets worth $3.9 trillion in the institutional marketplace. The index covers almost 98% of the global investable market across 83 countries for more than 10,000 securities.

Membership in the Russell Microcap Index for its equity indexes depends on the market capitalization, objectives and style attributes of the company. This membership lasts for one year and implies inclusion in the appropriate growth and value style indexes.

The annual reconstitution of the Russell Indexes covers the largest 4000 stocks in the U.S. as of the end of May. The stocks are ranked according to the total market capitalization to create the Russell 3000 index and Russell Microcap Index.

Echo Therapeutics specializes in the production of medical devices with advanced skin permeation technology.  Its competitors such as Abbott Laboratories (ABT - Analyst Report) and DexCom Inc. (DXCM - Analyst Report) are already a part of the family of Russell Indexes, being listed on the Russell 1000 Index and Russell 2000 Index respectively.

The stock currently retains a Zacks #4 Rank, which translates into a short-term Sell rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%