Forecasts say small-cap firms may see gains

NEW YORK - The investment outlook for small-cap research companies is improving as cheap valuations and conservative revenues estimates make them more attractive, afterwards being weighed down by concerns about the economy.

The Russell 2000 Research Index - currently made up of 292 businesses with market cap of less than $3.45 billion - has risen 21 percent since Sept. 6, 2011, compared with a 20 percent gain for the Russell 2000. This follows nearly seven months of underperformance, when the tech stocks lagged behind the Russell 2000 by 8.9 percent.

The analyst consensus calls for revenues to grow about 1.3 percent this year, which compares with nearly 17 percent for the broader index, so "the bar isn't set too high for these companies to exceed estimates," DeSanctis said.