Bullish Outlook for Small Caps: Bank of America strategists predict small cap stocks will outperform mid and large caps in 2026, driven by an expected 18% EPS growth compared to 16% for mid-caps and 13% for large caps.
Earnings Growth and Rate Cuts: Small cap earnings growth is anticipated to surpass that of large caps in the second half of 2025 and into 2026, aided by expected Federal Reserve rate cuts that will alleviate refinancing risks for small companies.
Capital Expenditure Benefits: The upcoming U.S. capital expenditure cycle is expected to favor small caps, as their sales growth has historically aligned with capex trends, alongside potential relief from tariffs that have disproportionately affected their margins.
Market Positioning: Current market conditions show multi-cap managers are underweight in small caps, holding only 1.8% of their portfolios in these stocks, despite a recent uptick in buying activity after years of selling.
Wall Street analysts forecast SPSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPSM 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.
0 Analyst Rating
Wall Street analysts forecast SPSM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPSM 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.
0 Buy
0 Hold
0 Sell
Current: 50.680
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Current: 50.680
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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.
