Stocks are entering a tough period. Top small-cap strategist says buy these steady quality names
Jefferies pointed to Citizens Financial Group, Okta and McCormick & Company as good plays during a tumultuous time for the overall market.
TL;DR
- Bond yields are rising, potentially pressuring the stock market.
- Jefferies suggests several small-cap stocks can weather this 'impending storm'.
- Top picks include Citizens Financial Group, Okta, and McCormick & Company.
- Historically, higher-for-longer rates have benefited small, value, and cyclical stocks.
- Current balance sheets are in a better position than in the past to handle higher rates.
- McCormick & Company is favored for its exposure to faster-growing consumer groups and emerging markets.
- Okta is recommended due to strong demand for its identity-based security services, driven by cybersecurity investments.
- Citizens Financial Group is noted for its above-peer earnings growth, improving profitability, and attractive valuation.