EXCLUSIVE: Magnificent 7 Underperformance, 'Soft Landing' Could Trigger A Rotation Into Small-Cap Stocks, Says Russell Investments' Eitelman
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 10 2024
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Source: Benzinga
Potential Catalysts for Small-Cap Stocks: Paul Eitelman from Russell Investments identifies two key factors that could lead to a rotation into small-cap stocks as 2025 approaches: underperformance of the tech giants known as the Magnificent 7 and a "soft landing" for the U.S. economy, which would benefit small-cap stocks due to their sensitivity to interest rates and economic cycles.
Supporting Factors for Growth: Eitelman suggests that accelerating earnings growth in the small-cap sector, along with moderating inflation and favorable Federal Reserve signals, would further support investor interest in small-cap stocks, potentially leading to a significant market shift.
Analyst Views on IWM
Wall Street analysts forecast IWM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for IWM is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
