quality

With reporting season already revealing earnings misses, valuation pullbacks are creating opportunities in high-quality small caps, according to DNR Capital’s Sam Twidale. Investors should look through short-term risk and select from sectors where fear and uncertainty prompt mispricings.

Valuing companies and their potential for growth is a slippery, convoluted process. Quality is a key metric, according to Loomis Sayles, but other factors play an equal role.

Market risks appear more balanced, quality companies poised to win market share.