Jefferies spies on large cap names that trade like small caps

With the broader market (TO SPY) in difficulty, decline in market capitalization (IWM) makes sense, says Jefferies.

“We feel today is very much like 99/00 in which we saw steep declines and reversals in growth,” strategist Steven DeSanctis wrote in a note. “Assess has been lagging since June 16, now cheaper than growth with a 35th percentile model; relative performance follows 2 years, the upside supports the value.”

“We feel more interested in small these days with 47% passive ownership, entries will boost small names, managers need to lower the cap,” DeSanctis said.

“We help by researching liquid names that trade like small cap stocks, we came up with 14 ideas.”

These actions are:

1. Tapestry (New York stock market :TRP)
2. LKQ (LKQ)
3. Wyndham Hotels (W.H.)
4. Gentex (GNTX)
5. WinTrust (WTFC)
6. A capital (COF)
7. Bank of Zions (IF WE)
8. Capital Bow (ACGL)
9. Densply (RADIOGRAPHY)
10. Textron (SMS)
11. Cummin (CMI)
12. Juniper Networks (JNPR)
13. FCM (FCM)
14. world bay (BERY)

Find out why BofA still loves the look of small cap stocks despite the outings.