Small-cap stocks benefit from low interest rates, moderate growth, potential Fed rate cuts, and recent FDA approvals.

Small-cap stocks are gaining investor interest due to favorable conditions, including anticipated lower interest rates and moderate economic growth. Vestis Corporation (VSTS), which provides uniform rentals, is expected to benefit from new business and improved customer retention. Similarly, RxSight, Inc. (RXST), a medical device company, is poised for growth following FDA approvals. Historically, small caps outperform large caps post-Fed rate cuts, enhancing their appeal in the current market.

October 13, 2024
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