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BofA analysts listed the top buy-rated small cap value stocks.
Stocks that focus on value style are historically cheap compared to the growth stocks. They benefit from accelerating profits growth and also tend to outperform when the Federal Reserve stops hiking interest rates, BofA analysts said.
In their BofA Securities’ Small and Mid cap Strategy report, analysts screened for buy-rated stocks in the Russell 2000 (NYSEARCA:IWM) universe that fit the value metrics.
These stocks fall into the top quintile of the index on at least one valuation metric, including price, free cash flow, EBITA over EV, earnings over price, sales over price, and sales over EV. They are also within the top 2 quintiles by average of all valuations. Excluded are the non-earners.
Top value stocks, as of Feb. 14:
- Vivid Seats Inc. Class A (SEAT)
- Adient Plc. (ADNT)
- Atmus Filtration Technologies Inc. (ATMU)
- Visteon Corp. (VC)
- Latham Group Inc. (SWIM)
- Academy Sports and Outdoors Inc. (ASO)
- Asbury Automotive Group Inc. (ABG)
- Group 1 Automotive Inc. (GPI)
- Upbound Group Inc. (UPBD)
- Urban Outfitters Inc. (URBN)
- Atlas Energy Solutions Inc. (AESI)
- Helmerich & Payne Inc. (HP)
- Patterson-UTI Energy Inc. (PTEN)
- Weatherford International Plc. (WFRD)
- Granite Ridge Resources Inc. (GRNT)
- Teekay Tankers Limited Class A (TNK)
- First Bancorp (FBP)
- Victory Capital Holdings Inc. Class A (VCTR)
- PROG Holdings Inc. (PRG)
- Enact Holdings Inc. (ACT)
- Essent Group Ltd. (ESNT)
- NMI Holdings Inc. Class A (NMIH)
- PagSeguro Digital Ltd. Class A (PAGS)
- StoneCo Ltd. Class A (STNE)
- Blackstone Mortgage Trust Inc. Class A (BXMT)
- Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI)
- Omnicell Inc. (OMCL)
- Patterson Companies Inc. (PDCO)
- Select Medical Holdings Corp. (SEM)
- Rush Enterprises Inc. Class A (RUSHA)
- 8x8 Inc. (EGHT)
- O-I Glass Inc. (OI)
- Pactiv Evergreen Inc. (PTVE)
- Commercial Metals Co. (CMC)
- Sylvamo Corp. (SLVM)
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