Jefferies bullish on U.S. small-to-mid cap financial stocks

Firstcash Holdings

28/09/2021 12:29

** Jefferies upgrades financial stocks in the U.S. small and
mid-cap segment (SMID) to "overweight" from "market weight,"
thanks to higher interest rates and a steeper yield curve
    ** The earnings and sales revision ratios continue to move
up and the sector ranks as one of the best inside small caps,
Jefferies says
    ** Adds that 2022 earnings numbers are very conservative and
should move up, keeping the revision ratios above average
    ** Financials tend to outperform when GDP is above 4%, which
is our forecast for 2022, Jefferies strategists say
    ** Brokerage downgrades the real estate sector to "market
weight" from "overweight" after their outperformance this year 
    ** The S&P 1000 index  .SPMIDSM , which combines the S&P 400
midcap and S&P 600 smallcap stocks, has climbed 19% this year vs
the benchmark S&P 500 index's  .SPX  18% rise

 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))