Pan Research is an independent research platform focused on uncovering under-followed micro-caps (sub-$500M market cap), small-caps (below $2B), and selectively mid-caps (below $10B). We concentrate on businesses exhibiting improving fundamentals, operating leverage, and potential valuation dislocations. Our approach is research-driven, industry-agnostic, and focused on identifying companies where fundamentals and market perception may diverge. Our work typically develops 12-18 month fundamental theses cent ...

Small-caps and the related equities have found their respective grooves. The fact that the Russell 2000 Index is higher by more than 7% year-to-date confirms this. ...

Core Viewpoint - A new bull market is emerging in long-neglected stocks, particularly in small-cap companies, according to Jim Paulsen, a veteran in the investment business who now writes a popular Substack newsletter [1] Group 1 - Jim Paulsen has 40 years of experience in the investment business [1] - The focus is on small-cap stocks that have been overlooked for a long time [1]

Core Insights - Small-cap stocks have shown strong performance recently, with the Russell 2000 Index returning 10.6% over the last three months [1] - Small-cap ETFs are positioned to capitalize on ongoing trends such as faster earnings growth, lower interest rates, and improved lending conditions [1] Group 1: Small-Cap Performance - U.S. small-cap earnings have rebounded significantly, with a 27% increase from January 27, 2026, after a 36% decline from the end of 2022 to September 19, 2025, leaving earnings only 19% lower than their 2022 peak [1] - The resurgence in small-cap earnings began in late 2025, indicating a potential shift in market dynamics [1] Group 2: Factors Supporting Small-Cap Growth - The spread of AI benefits to smaller companies, fiscal stimulus, and an improved outlook for regional banks are contributing factors that may further enhance small-cap performance [1] - Active management in small-cap ETFs, such as the T. Rowe Price Small-Mid Cap ETF (TMSL), is highlighted as a strategy that can provide an edge in portfolio performance [1] Group 3: T. Rowe Price Small-Mid Cap ETF (TMSL) - TMSL has outperformed the Russell 2000 Index with a return of 14.5% over the last three months, showcasing the effectiveness of its active management approach [1] - The ETF charges 55 basis points and utilizes fundamental research to assess growth opportunities and value measures, focusing on metrics like profitability and cash flow [1] - TMSL's technical indicators suggest a buy signal, with its price above the 50- and 200-day simple moving averages, indicating strong momentum in the small-cap segment [1]

Core Viewpoint - The market experienced a rally on Monday, with most sectors showing positive performance except for consumer staples, which declined slightly [1] Sector Performance - Small-caps, momentum, and risk strategies led the rally, indicating a preference for higher-risk investments [1] - Growth and value stocks also saw an increase, reflecting a broad-based market optimism [1] - Among the S&P 500 sectors, consumer staples was the only sector to close lower, with a decline of 0.4% [1] - Utilities experienced a minimal increase of 0.1%, while communications services and technology sectors both rose by 0.3% [1]

Core Viewpoint - As 2025 approaches, there is a growing debate regarding concentration and high valuations in large-cap stocks, alongside concerns about macroeconomic uncertainty and economic conditions, leading to a collective call for diversification, particularly highlighting opportunities in small-cap stocks [1] Group 1 - The discussion emphasizes the need for diversification in investment strategies [1] - There are concerns about the concentration of investments in large-cap stocks and their lofty valuations [1] - The macroeconomic environment and economic conditions are contributing to the call for diversification [1] Group 2 - Small-cap stocks are identified as a specific area of opportunity within the diversification strategy [1]

Core Viewpoint - Morgan Stanley is optimistic about the S&P 500 for the upcoming year, indicating a positive outlook for the overall market [1] Sector Preferences - The company favors discretionary goods, suggesting a strong consumer spending environment [1] - Healthcare is highlighted as a sector of interest, likely due to ongoing demand and innovation [1] - Financials are also favored, potentially reflecting expectations of interest rate changes and economic growth [1] - Industrials are included in the positive outlook, possibly driven by infrastructure spending and recovery in manufacturing [1] - Small-cap stocks are recommended, indicating confidence in domestic economic growth and recovery [1]

Core Insights - The S&P 1500 index is heavily influenced by large technology companies, similar to the S&P 500, indicating a concentration of market power within the tech sector [1] - Small-cap stocks are currently experiencing a significant rally, suggesting potential for sustained growth and investment opportunities in this segment [1] Group 1 - The dominance of Big Tech in the S&P 1500 reflects broader market trends and investor sentiment towards large-cap technology firms [1] - The recent performance of small-cap stocks may indicate a shift in market dynamics, providing a contrasting investment avenue to large-cap stocks [1] - Analysts suggest that the rally in small-cap stocks could have substantial momentum, potentially leading to increased investor interest and capital inflow [1]