The large-capitalization S&P 500 index generated a total return of 28.7% in 2021, while the Russell 2000 small-cap index total return was just 14.8%. Bank of America analyst Jill Carey Hall says small-cap stocks became about 9% more attractive relative to large-cap stocks from a valuation perspective last year, and small-cap stocks are now cheap relative to large-cap stocks “across every metric we track.”
For investors willing to stomach the risk and volatility of small-cap stock investing, here are nine of the best small-cap stocks to buy in 2022, according to Bank of America.
This post originally appeared at U.S. News & World Report.