February 2019 — Movements in the SMB Software Index
February was a strong month for the SurePath SMB Software Index, marking the second straight month of gains in excess of 10%. By the end of the month, the SMB Software Index was up ~ 10.1%, compared to 3.9% for the S&P 500, 4.9% for the Nasdaq, and 3.9% for the Dow Jones.
Drivers of Movement
The SCP SMB Software Index is a weighted based on the market capitalization of the 33 companies that are included in the index. The market cap of the top 5 companies accounts for more than half of the total market cap combined index and therefore, the movement of these 5 companies influence the SMB Index as a whole.
All the top constituents performed very well during February, with Intuit gaining 15.2% after beating Wall Street’s targets for its fiscal second quarter.
The Top Gainers and Losers for February
In February, the best performer of all constituents of the index was Paycom, which grew ~ 23% during the period. On the other hand, the biggest loser of the month was Stamps.com, which lost nearly 50% of its market cap after it announced that it had ended its exclusive partnership with the United States Postal Service.
Here’s how all constituents stacked up in the month of February
You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index
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