Small-cap stocks are staging a mini-rally: The Morningstar US Small Cap Index has gained nearly 3 percentage points more than the Morningstar US Large Cap Index during the trailing three months as of Oct. 11, 2024.
After such significant underperformance over such a long period of time, small-cap stocks could certainly have more room to run.
Here are the most undervalued stocks covered by Morningstar analysts that land in the small-cap portion of the style box, earn economic moat ratings of narrow or wide, and garner Standard or better capital allocation ratings as of Oct. 11, 2024.
This post originally appeared at Morningstar.