SEDG - Banks Think Small Cap Stocks Need to Catch Up: 3 Winners | Benzinga
The momentum trade has been exhausted by the large-capitalization stocks in the market, especially those in the technology sector, as names like Nvidia Co. (NASDAQ: NVDA) keep making new all-time highs. For this reason, quants at PGIM believe that Wall Street may soon rotate into small-capitalization stocks to squeeze further returns.
As the soldiers follow the general, stocks like SolarEdge Technologies Inc. (NASDAQ: SEDG), AB Electrolux (OTC: ELUXY), and even Antero Resources Co. (NYSE: AR) were once falling behind and could now catch up to the broader indexes. Each was tied to its own set of economic tailwinds, and analysts and institutions had enough reasons to boost and buy them.
Small businesses tend to outperform bigger ones during easing economic cycles. Now that the Federal Reserve (the Fed) is looking to cut interest rates in 2024, these small-capitalization names could help retail investors expand their wealth on the next wave of economic activity.
SolarEdge: Oil's Ugly Cousin
Oil prices have finally broken out of their $80 a barrel ceiling, and analysts at The Goldman Sachs Group Inc. (NYSE: GS) believe it could go as high as $100 a barrel this year.
Because the Fed could likely cut interest rates by May or June 2024, or so do traders think, according to the FedWatch tool in the CME Group Inc. (NASDAQ: