The Swiss investment bank has highlighted some mid-cap and small-cap European stocks that are predicted to come back this year. In July and August, the smaller European stocks outperformed large-cap stocks.
The small and mid-cap stocks are giving 1.7% of return compared to the large-cap’s 0.5%. The experts listed some of the risks of the small-cap stocks like liquidity concerns, inflation, and sector weights.
Besides that, the small-cap funds are now stabilized and both momentum and value indicators are supportive. The Union Bank of Switzerland figured out some small-cap stocks from various sectors like pharmaceuticals, manufacturing, logistics, and retail.
On average the stocks show year-to-year increases of 6.5%-7%. Among all these stocks Buzzi ( Italian cement and ready-mix company) shows an increase in year-to-year performance at 53.4%. The experts and analysts are buying the call with the target of 42 euros with a 53% upside from the September 2 close.
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