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Here are Bank of America’s favorite small stock picks for the second half


Harley-Davidson’s just-introduced 2021 models include the CVO lineup with the company’s most advanced audio and infotainment options, as well as its latest braking, steering and safety features.

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Bank of America just named its top small cap stocks for the second half of 2021.

The small cap benchmark Russell 2000 is starting to rebound after a more than 4% drop last week. Smaller names dropped and larger growth stocks outperformed as the threat of higher short-term rates slowing the recovery caused investors to reassess cyclical stocks linked to the economy. However, the index has returned more than 2% this week in signs of a comeback.

Bank of America highlighted buy-rated small and mid-cap stocks with a market capitalization of at least $1 billion. The names also need daily liquidity of at least $20 million traded per day.

The Wall Street firm’s list spans across some reopening and post-pandemic names, high quality stocks and names with pricing power in an inflationary backdrop. Plus, the bank has some catalyst-driven ideas.

“These represent stocks that our contributing fundamental research teams would consider their best ideas for 2021 within their [small and mid] cap coverage,” Bank of America quant and equity strategist Jill Carey Hall told clients.

The list has an average implied upside of 28% to their 12-month price targets. Take a look at the stocks here.


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