Back to top

View the PFP Archive

Profit from the Pros

Stocks Rally, Russell 2000 Small-Cap Index Makes New All-Time Highs

Great day in the markets yesterday with all of the major indexes on the rise. The Russell 2000 Small-Cap Index led the way with a 1% gain as they broke out to the upside and made brand new all-time highs!

As I've mentioned before, it's always good to see the 'riskier' small-caps outperforming as it shows an appetite for risk and is a bullish sign for more gains to come.

Risk on!

As you know, I've been saying that small-caps would take the leadership position on the next leg up, and that is what's taking place right now. And this makes perfect sense as it's the small-cap stocks that were always expected to be the biggest beneficiaries of the corporate tax cuts. Why? Because many larger companies employed complex strategies to reduce their effective tax rate down to the mid-twenties even though the actual tax rate was 35%. But many smaller companies did not have the resources or the opportunities to do that and were stuck paying a much higher effective tax rate.

Now with the corporate tax rate at 21%, those companies will see a significant tax savings and they won't need to employ a team of lawyers and accountants to do it. That's a substantial savings. That means bigger EPS gains. And that money will likely be used to fund their growth. Add in the individual tax cuts and that means more people spending more money which means more sales. And again, with each dollar in sales being worth more, it's a virtuous circle of prosperity.

There are plenty of sectors going up right now as a rising tide raises all ships.

But I would keep a close eye on financials, tech, and business service stocks. One way to participate in all three is thru the revolutionary blockchain technology.

Most only know about the growing blockchain industry because of the secure way crypto-currencies account for their transactions. But now, more and more companies are using blockchain in their businesses as it provides an incorruptible digital ledger for all types of transactions and data transfers -- from financial, to shipping, to health records, and more. It's truly revolutionizing virtually all industries that rely on security, cost efficiency, and speed. And the companies using it are as impressive as the companies providing it. This includes titans of industries like IBM, Intel, and Nvidia, to plenty of innovative start-ups that fit squarely in the hot small-cap space!

This must-have technology has created an explosive industry and is poised for massive gains this year. To learn more about how the blockchain technology is shaping the way companies do business, and more importantly, how to profit from it, please check out our latest commentary...

5 Surprising Ways to Profit from Cryptocurrencies and Blockchain Technology


Kevin Matras

Executive Vice President, Zacks Investment Research


Why Aren't You Profiting from the Blockchain Boom?

This revolutionary, incorruptible "Internet of Money" is changing the way the world does business. Its market size is projected to skyrocket from $706 million in 2017 to $60 billion by 2024.

Some investors are already making fortunes – why not you?

Zacks' newest portfolio avoids hyper-volatile Bitcoin and other cryptocurrencies. Instead, we target real businesses with tangible assets and actual earnings that drive the blockchain phenomenon. Only a limited number of investors can take part in our new approach for massive profits. The door closes Sunday, May 20.

See our blockchain stocks >>

Most Popular Articles from

How to Uncover Institutional Buying

Very few things can move a stock more than institutional buying. Read More »

5 Stocks Shining on Recent Broker Rating Upgrades

The opinion of brokers acts as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock. Read More »

3 "Internet of Things" Stocks to Buy Right Now

2018 promises to be another marquee year for these suppliers, with the number of connected devices worldwide set to continue its rapid growth. Read More »

Single-Family Homes Demand Bolster Builder Confidence in May

Solid economic growth and low unemployment levels substantiate the growing consumer demand for homes. Read More »

Free Lunch: Macy's Earnings, Small Cap Stocks Taking Off

Ryan McQueeney highlights the latest earnings report from Macy's (M), which saw the department store giant surpass analyst estimates and move its guidance higher. Read More »


What's Today's Top Rated Mutual Fund?

Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family.

Get started now>>

Bull of the Day: The Trade Desk (TTD)

Growth in its key mobile and connected TV divisions is pushing this ad company in the right direction. Read More »

New Zacks Strong Buys for May 17th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Customize Your Profit from the Pros Delivery
Connect with Us:
Contact Info:

Phone: 1.800.767.3771 ext. 9339