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Stock impact report

Why small-cap stocks are starting to see earnings growth after best quarter since 2021 [Yahoo! Finance]

Prairie Operating Co. (PROP) 
NASDAQ:AMEX Investor Relations: pledgepcorp.com
Company Research Source: Yahoo! Finance
small-cap stocks in the Russell 2000 ( ^RUT ) index are starting to see real earnings growth after a year of strong performance. Following several months of a rally driven primarily by growing P/E ratios — meaning higher multiples for investors — the Russell 2000's 3% price return through September was entirely driven by upwardly revised earnings expectations, according to research published on Friday by Bank of America. Analysts' earnings forecasts for Russell 2000 names like theater and hotel operator Marcus Corporation MCS ) rose in September at the fastest pace since mid-2022, according to the report, as the small-cap index hit an all-time high near the end of the month. Those hopeful projections turned into concrete earnings growth. At the end of the third quarter, small-cap stocks overall were up 12.4% on the three-month period, their best since the third quarter of 2021, according to BofA. The biggest winners on the month were value-oriented small caps, outperforming the Show less Read more
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