Earnings Report Card for Small-Caps

On Friday, we took an updated look at the earnings report card for the large-cap stocks in the S&P 500. We are nearing the end of earnings season, and large-cap reporting is looking OK. There were definitely more upsides than downsides, and the magnitude of upsides were larger than the size of downsides. Although this can be a function of downside surprises being pre-announced, while upsides are reported later, nonetheless the trend was surprisingly positive.

Now we turn our attention to small-caps. Two weeks ago, I compiled a mid-season report card for the Russell 2000, in order to discern if the underperformance of small-caps relative to large-caps this year is due to different earnings performance. Our findings at that time were that its upside earnings surprises and magnitude were better than the S&P 500's. However, the downsides were also worse! This is not unexpected, since the small-caps are more volatile than the large-caps. But we had not yet seen any earnings-based evidence that favored large cap over small....375 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.