Stocks come and go, but every year a few tiny companies get promoted to the small-capitalization indexes. Some eventually make it all the way to the S&P 500.
What they don’t do is go in the space of 18 months from being a penny stock with a market value of $39 million to be worth more than a dozen S&P 500 companies, yet that is exactly what FuelCell Energy Inc. has done.
FuelCell isn’t alone. Fourteen members of the Russell Microcap index have risen so much that they ended Thursday larger than the smallest S&P stock. One, real-estate broker eXp World Holdings , has a market capitalization of nearly $10 billion, more than double the smallest S&P stock. When the index reset was announced last year, the largest stock in the index had a market capitalization of $840 million.
Author(s): James Mackintosh
Publication Date: 18 February 2021
Publication Site: Wall Street Journal