Small Business Optimization Index Breaks Out in November: 5 Top Picks

Zacks2024-12-11

The National Federation of Independent Business (NFIB) small business optimization index came in at 101.7 for November. For the first time after 34 months (since June 2021), the reading came in above ...

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For the first time after 34 months (since June 2021), the reading came in above ...</p>\n\n<a href=\"https://finance.yahoo.com/news/small-business-optimization-index-breaks-132800227.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Small Business Optimization Index Breaks Out in November: 5 Top Picks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSmall Business Optimization Index Breaks Out in November: 5 Top Picks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-11 21:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/small-business-optimization-index-breaks-132800227.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The National Federation of Independent Business (NFIB) small business optimization index came in at 101.7 for November. For the first time after 34 months (since June 2021), the reading came in above ...</p>\n\n<a href=\"https://finance.yahoo.com/news/small-business-optimization-index-breaks-132800227.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MAX","symbol_name":"MediaAlpha, Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/small-business-optimization-index-breaks-132800227.html","article_id":"2490662028","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/.wnlICCvUhE2mQs0zn8lBQ--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/ef0a203c40a8fd2c2b5a1f4904ccbe9e"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490662028","pubTimestamp":1733923680,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The National Federation of Independent Business  small business optimization index came in at 101.7 for November. For the first time after 34 months , the reading came in above the 50-year average of 98. Of the 10 Optimism Index components, nine increased and one remained unchanged.In November, the net percent of owners expecting the economy to improve rose to a net 36% — the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index. About 14% of small business owners said it’s a good time to expand business — the highest since June 2021.At this stage, it will be prudent to invest in small-cap stocks to strengthen your portfolio. Here, we recommend five small-cap stocks with a top Zacks Rank and solid upside potential for the short term. These are — Rayonier Advanced Materials Inc. RYAM, Private Bancorp of America Inc. PBAM, MediaAlpha Inc. MAX, Townsquare Media Inc. TSQ and Lands' End Inc. LE.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MAX":"MediaAlpha, Inc.","GPRO":"GoPro","BK4078":"消费电子产品","TSQ":"Townsquare Media","BK4125":"广播","BK4211":"区域性银行","RYAM":"Rayonier Advanced Materials Inc.","PBAM":"Private Bancorp of America, Inc.","LE":"Lands End Inc","BK4122":"互联网与直销零售","BK4109":"特种化学制品","BK4094":"服装零售","BK4077":"互动媒体与服务"},"translate_title":"11月小企业优化指数爆发：5个首选","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LE":1,"PBAM":1,"RYAM":1,"TSQ":1,"MAX":0.9,"GPRO":0.89},"content_text":"The National Federation of Independent Business (NFIB) small business optimization index came in at 101.7 for November. For the first time after 34 months (since June 2021), the reading came in above the 50-year average of 98. Of the 10 Optimism Index components, nine increased and one remained unchanged. \nIn November, the net percent of owners expecting the economy to improve rose to a net 36% — the highest since June 2020. This component had the greatest impact on the overall increase in the Optimism Index. About 14% of small business owners said it’s a good time to expand business — the highest since June 2021.\nAt this stage, it will be prudent to invest in small-cap stocks to strengthen your portfolio. Here, we recommend five small-cap stocks with a top Zacks Rank and solid upside potential for the short term. These are — Rayonier Advanced Materials Inc. RYAM, Private Bancorp of America Inc. PBAM, MediaAlpha Inc. MAX, Townsquare Media Inc. TSQ and Lands' End Inc. LE. \nTrump Tariff to Boost Small Businesses\nSince the onset of the COVID-19 pandemic in March 2020, small businesses have suffered a lot. During the pandemic, the main concern was demand, as social distancing resulted in a slowdown in U.S. consumer spending, which hurt this segment. The global breakdown of supply-chain systems and the shortage of manpower have affected these companies the most.\nDonald Trump’s implementation of tariffs on foreign products is primarily aimed at strengthening U.S. industries by forcing companies to bring back jobs to the country. Small businesses have no geographical diversification and depend on U.S. consumers. \nImposition of tariffs on foreign products, especially those used as inputs to final products will make cheaper imported goods (particularly Chinese inputs) more costly. This will help indigenous small businesses to achieve a level playing field. Moreover, the Trump administration’s business-friendly policies such as reduction of corporate tax rate and anti-regulatory steps will aid small business owners. \nRate Cut to Benefit Small Businesses\nAfter the pandemic, the major issue for U.S. small businesses was galloping inflation. This space suffered significantly due to a higher interest rate regime. The companies operate on a thin profit margin, and most new businesses take time to achieve profitability.\nSmall businesses are unable to pass on the total hike in input costs to their final products, taking a toll on their financial condition. Small businesses are generally dependent on cheap sources of credit for their survival. Therefore, a gradual decline in the benchmark interest rate will help this space immensely.\nThe Fed reduced the market interest rate by 75 basis points in September and November to a range of 4.5-4.75%. The CME FedWatch interest rate derivative tool currently shows an 86% probability that the central bank will cut the Fed fund rate by another 25 basis points in December. If this materializes, total reduction in the Fed fund rate will be 1% in 2024.\nBuy 5 Small-Cap Stocks With Solid Upside in the Short Term \nThese five stocks have strong growth potential for 2025 and have seen positive earnings estimate revisions over the last 60 days. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe chart below shows the price performance of our five picks year to date.\nImage Source: Zacks Investment Research\nRayonier Advanced Materials Inc.\nRayonier Advanced Materials operates as a global supplier of cellulose specialties products, a natural polymer for the chemical industry. RYAM’s products include cellulose specialties primarily used in dissolving chemical applications; commodity viscose used in the manufacture of textiles for clothing and other fabrics, and in non-woven applications, absorbent materials comprising fibers for absorbent hygiene products and other products. \nRYAM’s products are used in a wide range of industrial and consumer products such as filters, cosmetics and pharmaceuticals. RYAM’s production facilities are located primarily in Jesup, GA, and Fernandina Beach, FL.\nRobust Short-Term Upside for RYAM Stock\nRayonier Advanced Materials has an expected revenue and earnings growth rate of 6% and more than 100%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 26.1% over the last 60 days. \nThe average short-term price target of brokerage firms represents an increase of 51.3% from the last closing price of $8.17. The brokerage target price is currently in the range of $12 to $13. This indicates a maximum upside of 59.1% and no downside.\nPrivate Bancorp of America Inc.\nPrivate Bancorp of America Private Bancorp of America provides banking products and services to individuals and businesses in California. PBAM offers checking and savings, money market, certificate of deposit, sweep, zero balance, and individual retirement accounts, unsecured lines of credit, personal credit lines, and term loans, additional services, such as direct deposits, online banking, ATM and debit cards, credit cards, savings/line of credit overdraft protection, and safe deposit boxes; and certificate of deposit account registry services.\nImpressive Short-Term Upside for PBAM Shares\nPrivate Bancorp of America has an expected revenue and earnings growth rate of 11.1% and 5.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 5.4% over the last 60 days. \nThe average short-term price target of brokerage firms represents an increase of 21.9% from the last closing price of $53. The brokerage target price is currently in the range of $60 to $71. This indicates a maximum upside of 34% and no downside.\nMediaAlpha Inc. \nMediaAlpha operates an insurance customer acquisition platform in the United States. MAX optimizes customer acquisition in various verticals of property and casualty insurance, health insurance, and life insurance. MAX provides real-time programmatic technology platform specializing in vertical search and metasearch.\nAstonishing Price Upside Potential for MAX Stock\nMediaAlpha has an expected revenue and earnings growth rate of 39.1% and 82.5%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 28.3% over the last 60 days. \nThe average short-term price target of brokerage firms represents a jump of 107% from the last closing price of $11.17. The brokerage target price is currently in the range of $13 to $31. This indicates a maximum upside of 177.5% and no downside.\nTownsquare Media Inc.\nTownsquare Media is a local media and entertainment company. TSQ owns and operates radio, digital and live event properties in small to mid-sized markets across the country. TSQ specializes in creating and distributing original entertainment, music and lifestyle content. TSQ’s assets include radio stations, local companion websites, and a streaming radio App called radioPup for iOS and Android, and live events. \nHuge Price Upside Potential for TSQ Shares\nTownsquare Media has an expected revenue and earnings growth rate of 0.2% and 20.6%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 13.2% over the last 30 days. \nThe average short-term price target of brokerage firms represents a jump of 66.1% from the last closing price of $10.08. The brokerage target price is currently in the range of $12.50 to $21. This indicates a maximum upside of 108.3% and no downside.\nLands' End Inc.\nLands' End operates as a multi-channel retailer. LE offers men's, women's, and kids' apparel, outerwear and swimwear, specialty apparel, accessories, footwear, and home products. LE operates in two segments: Direct and Retail. LE offers products through catalogs, online at www.landsend.com and affiliated specialty and international Websites, and through retail locations.\nExcellent Price Upside Potential for LE Stock\nLands' End has an expected revenue and earnings growth rate of 2.7% and 54%, respectively, for next year (ending January 2026). The Zacks Consensus Estimate for 2025 earnings has improved 2.7% over the last seven days. \nThe average short-term price target of brokerage firms represents a jump of 26.3% from the last closing price of $14.69. The brokerage target price is currently in the range of $17 to $20. This indicates a maximum upside of 36.1% and no downside.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nLands' End, Inc. (LE) : Free Stock Analysis Report\nTownsquare Media, Inc. (TSQ) : Free Stock Analysis Report\nRayonier Advanced Materials Inc. (RYAM) : Free Stock Analysis Report\nPrivate Bancorp of America, Inc. (PBAM) : Free Stock Analysis Report\nMediaAlpha, Inc. (MAX) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490662028"}