Small caps have 'incredible tailwind' coming: Portfolio manager

Small cap stocks (^RUT) have seen a resurgence in recent sessions as investors seem to begin to rotate out of Big Tech.

Villere & Co. portfolio manager Sandy Villere joins Market Domination to talk about how investors can play small cap stocks as the market begins to rotate out of the tech trade.

Villere comments on the outlook for small caps:

"I mean we're expecting robust earnings growth, right, and even when rates go down right, even if you're looking at 14.5 times earnings. Remember when rates go down and there's a lot of leverage that small caps use, so I think the earnings are actually going to be even better than what are currently modeled into those forecasts. So I think small caps have an incredible tailwind behind them. And a great opportunity to get involved again."

He goes on to weigh in on several small-cap stocks On Holding (ONON), First Hawaiian (FHB), and Option Care Health (OPCH).

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino