Accelerating US economic growth and favorable valuations relative to their large-capitalization peers set the stage for small-cap names to outperform in 2014. Our top pick is an undervalued provider of freight services that stands to benefit from lower costs and growing demand.
An increase in temporary staffing appears poised to become a permanent feature of the US labor market. Our top pick boasts some of the highest profit margins in this growing industry and focuses on supplying the information technology, life sciences and health care markets with highly trained professionals.
Industry consolidation, recovering demand for travel and lower fuel costs have provided the major US air carriers with a major tailwind. Our top picks should continue to outperform and would be good buys on any pullback.
Don’t believe the hype about the US as a waning economic power. The world’s largest economy remains the go-to destination for investors seeking to outperform.