Small Cap Stocks Attractive Amid Stagflation Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy BAC?
Source: CNBC
- Stagflation Risks: The U.S. economy faces stagflation risks, with February's Producer Price Index (PPI) rising 3.4% year-over-year and core PPI at 3.9%, intensifying concerns over low growth and high inflation, which has led to increased market volatility.
- Increased Market Volatility: The CBOE Volatility Index (VIX) recently reached about 23, indicating rising market uncertainty and heightened investor fear, particularly in the small-cap sector where investors are favoring high-quality stocks with cash returns.
- Small Cap Screening: Bank of America identified small-cap stocks in the top quintile for both value and quality, focusing on companies that have paid dividends or reduced share counts over the past 12 months to mitigate potential stagflation risks.
- Stock Performance: Bread Financial is rated a buy, despite being down 12% from its recent high, it has risen 1.5% this month; Progyny is down 37% but up 2% this week, indicating potential opportunities in small-cap stocks amid market uncertainty.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 47.010
Low
55.00
Averages
61.64
High
71.00
Current: 47.010
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
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.
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