Swift Transportation’s stock (SWFT) has dropped almost 45% so far in 2015, despite low gas prices and an improving employment picture. William Hench, portfolio manager for the Royce Micro-Cap Opportunity Fund (ROSFX), says the trucking company’s battered – and cheap - shares will start moving in the other direction as the economy incrementally picks up steam. 'If things like the employment numbers continue to improve and interest rates remain low then stocks like this with very low multiples should do well,' said Hench. 'And if you continue to get low gas prices that is not going to hurt either.' Swift is trading at nine times its estimated forward earnings. The Royce Micro-Cap Opportunity fund is down over 12% year-to-date, according to fund-tracker Morningstar. He is also positive on the McClatchy Company (MNI), down over 58% year-to-date, which trades at 16 times next year’s forecast earnings. The old-school newspaper company is making the transition to online news and Hench said it is making strides in that digital direction faster than expected.
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