The Russell 2000 Small-Cap Index, ticker symbol: ^RUT, is the hottest index of 2016 with YTD gains of over 18%. The index components are interesting not only because of recent performance, but because the top performers either grow to become mid-cap stocks or are bought by large-cap companies at premium prices. This means selecting the best components can result in large gains. In this post, I’ll perform a quantitative stock analysis on the entire list of Russell 2000 stock components using the R programming language. Building on the methodology from my S&P Analysis Post, I develop screening and ranking metrics to identify the top stocks with amazing growth and most consistency. I use R for the analysis including the
rvest library for web scraping the list of Russell 2000 stocks,
quantmod to collect historical prices for all 2000+ stock components,
purrr to map modeling functions, and various other
tidyverse libraries such as
tidyr to visualize and manage the data workflow. Last, I use
plotly to create an interactive visualization used in the screening process. Whether you are familiar with quantitative stock analysis, just beginning, or just interested in the R programming language, you’ll gain both knowledge of data science in R and immediate insights into the best Russell 2000 stocks, quantitatively selected for future returns!