The S&P 500 is up by 14% year-to-date but it has not gone unnoticed that the robust performance has been driven by strong displays from the tech mega-caps.
According to Goldman Sachs strategist Lily Calcagnini, there are better investment opportunities right now further down the food chain.
“Small stocks trade at a valuation discount relative to large caps, suggesting now is an attractive entry point for investors with multi-year investing time horizons,” Calcagnini explained. “Even within the large cap universe, smaller companies look inexpensive relative to larger ones in the context of both the last 10 and 35 years.”
In fact, while Calcagnini makes the case that the S&P 500 will gain another 9% over the next year and hit 4,700, she anticipates a 14% rise in the small-cap focused Russell 2000 index, which will represent a 5 pp of outperformance vs. the S&P 500 outlook.
Meanwhile, the analysts at Goldman Sachs have been getting into the details and seeking out those small-caps…
2023-06-28 19:29:55
Source from finance.yahoo.com