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.

Stocks are entering a tough period. Top small-cap strategist says buy these steady quality names

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.