Small-Cap Stock Traps: Pass on Aaron’s (AAN), Upwork (UPWK) for Now

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In this week’s episode of The Bull & The Bear, let’s take a look at two small-cap stocks.

A lot of new investors try to swing for the fences when they first start trading.

They try to find the biggest name they know and invest in it with hopes of massive returns — companies like Apple Inc. (Nasdaq: AAPL) and Amazon.com Inc. (Nasdaq: AMZN).

But investing in big companies doesn’t guarantee huge returns. It can be just the opposite.

That’s why it’s worth looking at smaller companies because they have a greater potential for massive returns you’re looking for.

But these small-cap stocks carry some risk as well. Small-cap stocks are companies with market capitalizations typically ranging from $300 million to $2 billion.

Small-Cap Stocks and the Russell 2000 Index

The iShares Russell 2000 ETF — an exchange-traded fund (ETF) tracking stocks listed in the Russell 2000 index — jumped more than 63% since reaching a low in March 2020.

After a dip in late September, the ETF has risen 12% to its current price, indicating its back on the upswing.

The ETF holds companies like Novavax Inc. (Nasdaq: NVAX) — a name synonymous with a COVID-19 vaccine, online retailer Overstock.com Inc. (Nasdaq: OSTK) and popular footwear supplier Crocs Inc. (Nasdaq: CROX).

It also includes one stock that Chief Investment Strategist Adam O’Dell recommended to his Green Zone Fortunes readers in May that’s up more than 125%.

Russell 2000 ETF Climbs 63%

small-cap stocks Russell 2000 ETF

In this episode of The Bull & The Bear, I’ll talk with Adam and contributor Charles Sizemore about two small-cap stocks listed on the Russell 2000.

We’ll examine what each of these three companies do and how they’ve performed recently.

What’s even better is you’ll get insight on what you should do with these three companies — if you are thinking about buying or already have them in your portfolio.

Remember, knowing the data and the details about a specific company helps you determine whether it is worth investing in.

That’s why we do the work for you by looking at these specific stocks and give our analysis on each one.

The Bull & The Bear

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Safe trading,

Clark_Sig

Matt Clark

Research Analyst, Money & Markets

Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.

The post Small-Cap Stock Traps: Pass on Aaron’s (AAN), Upwork (UPWK) for Now appeared first on Money & Markets.