SMID-Cap Stocks: Hidden Blooms Amid the Sequoias
After years of large-cap equity dominance, we believe the next generation of strong performers will be found within small and mid-size companies.
3/26/2025
9 min read
Topic
Equities
Key takeaways
- The Magnificent 7 became the equity market’s giant sequoias, driving extreme market narrowness. But 2025 could see a broader market and compelling SMID-cap opportunities.
- We expect to see both expanding margins and accelerating growth as SMID-cap companies embed artificial intelligence deeper into their platforms.
- Given that SMID-caps delivered competitive results in the second half of 2024, we believe now is an opportune time for investors to consider increasing their exposure.
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