Another equity selloff is brewing as a warning from Snapchat’s parent has triggered broader panic, with fears Snap is the next canary in the coal mine for tech.
Getting knocked down along with tech stocks this year have been the smaller companies, which are pricing in a “nasty recession and decline worse than many bear markets,” notes a team of Jefferies strategists led by Steven G. DeSanctis. In our call of the day, the Jefferies team argues that this hard-hit group of stocks has been unduly punished by a “baby with the bathwater” reaction by investors. And the team offers a dozen or more stocks it thinks could be poised for a bounce.
As for the buy-rated names, the team has 14 that have “fallen harder than the index, but did not miss numbers nor see a cut in their estimates.” At the top are Sonos, DraftKings, Aptiv, Floor & Decor and Coty.Opinion: ‘I feel like I am reliving the summer of 2008.’ Strategist David Rosenberg sees bear market sinking the S&P 500 to 3,300.