NAPA - BofA screens for quality small cap stocks ahead of Fed rate hikes

Bank of America analyst Jill Carey Hall highlighted 28 Buy-rated "quality" small cap stocks in the Russell 2000 index (RTY), with 20 of them on the "growth" benchmark.  "Quality is typically one of the most-rewarded styles during Late Cycle regimes/Fed hiking cycles, the Russell 2000 Growth has become lower quality than ever (45% non-earners)," the analyst wrote in a note to clients last week. Meanwhile, Russell 2000 growth stocks (NYSEARCA:IWF) now look "historically cheap" when compared with Russell 2000 value (NYSEARCA:IWD), the analyst highlighted. Year-to-date, IWF falls nearly 13% and IWD is down almost 4%, according to the chart here.  Overall, BofA screened Russell 2000 stocks for high quality, those in the top quintile on at least one of the cyclical growth factors that fare well in the late cycle, top quintile by operating margin or margin expansion Y/Y, and is Buy-rated by a BofA fundamental analyst. BofA's ideas for Russell 2000 stocks

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BofA screens for quality small cap stocks ahead of Fed rate hikes