In This Article:
We recently compiled a list of the 12 Best Performing Small Cap Stocks So Far in 2025. In this article, we are going to take a look at where Corsair Gaming, Inc. (NASDAQ:CRSR) stands against the other small cap stocks.
On February 14, Stacey Sears, portfolio manager at Emerald Advisors, joined 'Squawk Box' on CNBC to share her insights on the market's performance in early February. She thinks that small-cap earnings data is encouraging. Despite various news events, which include inflation data and tariff announcements, she thinks that the market has handled the developments well. Michael Hartnett of Bank of America suggests that the recent hot CPI could be a blessing in disguise as it might lead President Trump to adopt more cautious policies regarding tariffs and immigration. But Sears emphasized that her team is not overly concerned about inflation levels at present. They believe that while there has been an uptick in some inflation indicators like PPI elements, these don't significantly impact Personal Consumption Expenditures (PCE), which is a focus for Fed Chair Jerome Powell.
In terms of positioning within this environment, Sears discussed how small-cap stocks are showing encouraging signs after being in an earnings recession for much of the past two years. The fourth quarter marked a turn with positive year-over-year earnings growth exceeding expectations, tracking at high single digits instead of the anticipated 2% growth. This outperformance spans multiple sectors including financials, healthcare, and technology. She was questioned about small caps being less appealing during periods of high inflation and interest rates due to their volatility compared to larger cap stocks like those in mega-cap indices reaching peak concentration levels. Sears pointed out that small caps are currently undervalued relative to their historical norms within equity markets. She believes structural changes are unlikely and anticipates recovery as domestic economic strength continues with GDP tracking positively according to Atlanta Fed data. Moreover, borrowing costs have decreased recently by about 100 basis points based on secure overnight financing rates (SOFR), which should alleviate some headwinds affecting earnings growth for small caps.
Given these factors combined with favorable valuations today, Sears sees opportunities emerging within small caps.
Methodology
We used the Finviz stock screener to compile a list of the best-performing stocks that were trading between $300 million and $2 billion. We then picked the top 12 stocks with the highest year-to-date gains, as of February 17. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.