With the broader market (SPY) struggling, shifting down in market capitalization (IWM) is smart, Jefferies says.
“We really feel right now is very similar to ’99/00 during which we noticed sharp declines and rallies by Development,” strategist Steven DeSanctis wrote in a notice. “Worth has lagged since June 16, now cheaper than Development with mannequin in thirty fifth percentile; relative efficiency follows 2-year, increased helps Worth.”
“We really feel like extra curiosity in small today with 47% passive possession, inflows will enhance smaller names, mgrs must get down cap,” DeSanctis stated.
“We assist by searching for liquid names that commerce like smaller caps shares, discovered 14 concepts.”
These shares are:
- Tapestry (NYSE:TPR)
- LKQ (LKQ)
- Wyndham Inns (WH)
- Gentex (GNTX)
- Wintrust (WTFC)
- Capital One (COF)
- Zions Banc (ZION)
- Arch Capital (ACGL)
- Dentsply (XRAY)
- Textron (TXT)
- Cummins (CMI)
- Juniper Networks (JNPR)
- FMC (FMC)
- Berry World (BERY)
See why BofA nonetheless likes the look of small-cap shares regardless of outflows.