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Small-Cap Stocks Are Hot Again. We Found 6 Promising Ones. - Barron's

1. Small-cap stocks are recovering, gaining 22% since April. 2. Tariff rollbacks boost economically sensitive small-caps more than large caps. 3. While short-term gains are possible, caution is warranted for small-caps. 4. Brinker International, Chili's owner, recognized as an attractive small-cap stock. 5. Russell 2000 small-cap index remains below previous record, indicating room for growth.

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FAQ

Why Bullish?

Small-caps like EAT stand to gain from the tariff rollback and economic recovery. Historical trends show continued volatility, but selective investments can yield positive returns.

How important is it?

The article highlights EAT as part of an attractive small-cap segment, which indicates potential for growth amid favorable economic policies.

Why Short Term?

The immediate effects of tariff changes are influencing stock valuations. However, historical performance suggests longer gains are uncertain, particularly for small-caps.

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