Editors' Pick: Originally published Jan. 21.
With small-cap stocks taking a beating this month -- the Russell 2000 Index is down 12% this year, compared with the S&P 500's 9% dip -- some of the worst performers include companies in the shipping, biotech and, of course, energy sectors.
Oppenheimer analysts noted this week that investors are better off buying large-cap growth stocks that have been oversold than small-cap value stocks that are seeing a bump.
The 10 small-cap stocks on the following pages are the worst-performing stocks among the Russell 2000 year to date. We've paired the list with commentary from Jim Cramer, if the stock is owned by his Action Alerts PLUS Charitable Trust Portfolio, or ratings from TheStreet Ratings, TheStreet's proprietary ratings tool, for another perspective.
When you're done, be sure to also check out the small-cap stocks with the best performance this year.
TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equity market returns, future interest rates, implied industry outlook and forecasted company earnings.