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ETF Investing: 16 small-cap stocks that could get a boost from ETF buying

ETF Investing: 16 small-cap stocks that could get a boost from ETF buying

2021-03-05 21:45:00
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The Russell family of indexes will add several new publicly traded companies in March, after which exchange-traded funds that track the indexes will have to buy shares in those companies. This buying activity could boost stock prices, according to an analysis by Jefferies.

"A number of names could see significant tailwinds," Jefferies analysts wrote. Those 16 stocks are in the table below, along with the number of days Jefferies calculates they will see buying pressure.

There are some caveats.

"We're adding to the growing list of concerns that small cap performance is going too far and too fast," the analysts explain.

As of Friday's opening, the Russell 2000
ROCK,
+ 2.11%

is up 8.7% in the year to date, compared to a flat display for the S&P 500
SPX,
+ 1.95%

and a negative for the Nasdaq
COMP,
+ 1.55%

In addition, companies are rushing to go public at a pace not seen since 1997, even overshadowing the 1999-2000 dot-com bubble.

“When the IPO calendar was so hot in the past, performance cooled off,” Jefferies wrote. "We don't see a negative performance, but Small is lagging for the next 6 and 12 months as investors process the new names."

Company and ticker

Days to buy

From Midwest Holding Inc.
MDWT,
-1.39%

15.2

Olema Pharmaceuticals Inc.
OLMA,
+ 3.43%

14.2

Silverback Therapeutics Inc.
SBTX,
-4.82%

11.1

Kinnate Biopharma Inc.
KNTE,
+ 8.62%

11

Sigilon Therapeutics
SGTX,
+ 6.04%

9.9

4D Molecular Therapeutics Inc.
FDMT,
+ 10.10%

9.3

Ortho Clinical Diagnostics Holdings
OCDX,
+ 2.61%

9

Terns Pharmaceuticals Inc.
STERN,
+ 1.20%

8.5

Cullinan Oncology
CGEM,
+ 2.96%

7.5

Bolt Biotherapeutics Inc.
BOLT,
+ 24.88%

7.2

Vor Biopharma
VOR,
+ 2.70%

6.8

Neximmune
NEXI,
-6.55%

6.5

908 Devices Inc.
MASS,
-3.60%

5.8

BioAtlaInc.
BCAB,
-4.89%

5.5

Talis Biomedical
TLIS,
-1.61%

5.0

Decibel Therapeutics Inc.
DBTX,
-16.92%

5.0

Source: Jefferies

Jefferies explains that they & # 39; days to buy & # 39; We calculated the weight of each name over the Russell indices multiplied by our best estimate of the number of passive assets associated with each index to arrive at dollars to buy. We then divide the dollars by the price to arrive at stocks that we can buy. We then took the average trading volume over the past 10 days to determine the days to buy. "

Read more: These & # 39; sweet sixteen & # 39; recovery stocks are still trending upward, according to Raymond James

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