From Yahoo Finance: 2025-05-09 17:21:00

AllianceBernstein notes that US small-cap stocks have taken a hit, with the Russell 2000 Index down over 10% in the past 6 months due to trade wars. However, they believe equity markets are broadening, which could benefit small-caps over time as they tend to outperform during market concentration unwinding cycles.

Small-cap stocks, perceived as more economically sensitive, have underperformed large-caps recently. AllianceBernstein says these conditions are unique, with trade tensions affecting the broader economy. They believe robust companies can still see earnings growth, providing hope for small-cap investors amidst market broadening.

The 10 largest stocks accounted for over half the market cap of the Russell 1000 Growth Index by 2024 end, a record high in market concentration. Despite signs of unwinding, concentration remains high. AllianceBernstein suggests small-caps, trading at depressed valuations compared to large companies, could benefit from declining market concentration as economic conditions recover.

ZoomInfo Technologies Inc. (ZI) is highlighted as a low-priced stock to invest in for the long term. With a current stock price of $8.89 and a market cap of $3.18 billion, the company provides go-to-market intelligence and an engagement platform for professionals. Analysts at Jefferies and J.P. Morgan have reiterated buy ratings for ZI, citing growth potential and strategic transitions aimed at stabilizing and growing the business.

While ZI ranks 2nd on the list of best low-priced stocks to invest in long term, some deeply undervalued AI stocks may offer higher returns over a shorter period. Analysts believe ZI’s emphasis on targeting larger enterprise clients and operational improvements can lead to sustainable growth. However, they suggest exploring other undervalued AI stocks for potentially greater returns within a shorter timeframe.



Read more at Yahoo Finance: Is ZoomInfo Technologies Inc. (ZI) the Best Low Priced Stock to Invest in For the Long Term?