[Next Stock Titans] These Up-and-Coming Stocks Poised to Be the Next Big Caps

Some smaller firms are on the verge of breaking into the big leagues. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Exclusive Report: Master Uncertain Markets]( In the world of investing, uncertain markets can be downright terrifying. The fear of losing your hard-earned money can keep you up at night, and the anxiety of not knowing what tomorrow holds can be overwhelming. But what if you could take control of this uncertainty and turn it to your advantage? What if you could not only survive but actually profit from market volatility?[Go HERE to see the Potential Investing Opportunity]( By clicking link you are subscribing to The Bullish Traders Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Unveiling the Up and Coming Stocks Poised for Big Cap Status  Hi Traders,  In the investment world, it seems that size does matter. The larger the enterprise and stock, the better the year it's been for investors. But don't be fooled, some underdogs are making a move and might just crash the party.  Check this out: Nine stocks from the S&P MidCap 400 - featuring industrial players like Hubbell (HUBB) and Builders FirstSource (BLDR), plus tech wizard Dynatrace (DT) - are now estimated at $13 billion or more.  Sounds impressive, right? Well, it gets better.  These nine have outgrown a whopping 15% of stocks in the S&P 500 - the superstar index that has the world's undivided attention.  These incredible strides made by certain midsize firms give us a sneak peek into the silent revolution brewing beneath the index surface.  Yes, the big caps are stealing the spotlight for now, but these smaller, rebellious contenders aren't just spectators, they're in the ring and scoring massive points.  It's almost like looking into a crystal ball to see the future big-cap victors.  In the words of Quincy Krosby, chief global strategist for LPL Financial, "The rationale for the rebound in small and midcap flows is significant." And we can't help but agree.  But the truth remains, for the moment at least, that investors have a soft spot for the big-cap darlings in the S&P 500.  However, the identity of these big caps could be undergoing a significant transformation.  Look at the stats: The SPDR S&P 500 ETF Trust (SPY) is up by a handsome 15.2% this year, leaving the 6.1% rise by the SPDR S&P MidCap 400 Trust (MDY) and SPDR Portfolio S&P 600 SmallCap ETF (SPSM) in its wake.  But here's where the plot thickens: Some midcap stocks have soared to such heights they're now ready to rub shoulders with the S&P 500 league.  Case in point, Hubbell, the electrical components manufacturer. Its stock has surged almost 37% this year, pushing the company's worth to a cool $17.2 billion.  Were Hubbell to join the S&P 500 party, it would be the 363rd-most-valuable stock on the list.  But the miracles of the midcap world don't stop there. Keeping tabs on these promising stocks can highlight crucial shifts that might shake up the S&P 500 landscape.  As of June 19, Dish Networks (DISH), the least valuable S&P 500 stock at $3.4 billion, is replaced by Palo Alto Networks (PANW), valued at a whopping $74.6 billion. And the plot could thicken.  Close to 35 stocks in the S&P 500 are valued under $10 billion - significantly below the average $77 billion market capitalization of stocks in the index.  Also part of this midcap marvel league is Builders FirstSource, which has witnessed an over 85% stock surge this year, valuing the company at $15.5 billion.  And let's not forget Dynatrace, the computer security firm. Thanks to a 34.8% boost this year, this S&P 400 company now sits comfortably at $15 billion.  With the S&P 500's stellar performance this year, it's no wonder that investors are besotted with the largest stocks.  But let's remember the midcap stocks that are making waves and reminding us that the big-cap landscape is ever-evolving.  So keep an eye on these rising stars - they may just be the next headliners in the investment world.  Keep on keeping up!  John @ Traders on Trend  (In the next article: Is the S&P 500 expected to remain stagnant as the earnings yield declines to 5.1%? Find out below! 👇) Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Flat Trading Expected for S&P 500 as Earnings Yield Dips to 5.1%  It seems that the more we play the investment game, the more we realize it's akin to a rather sophisticated dance, one with a lot of intricate footwork and rhythm changes.  Right now, the S&P 500 earnings yield (EY) is performing a fascinating routine.  Under 5%? That's an indicator the equity market is probably reaching a little too high for that top shelf.  While the EY isn't a precise moment-to-moment market metronome, it's a pretty solid conductor when looking at the bigger picture.  Now for some encouraging notes. The S&P 500 managed to tango its way up by 2.5% last week, not a bad performance.  In tune with this, the Bloomberg corporate high-yield index indicates that the asset class (corporate high yield or below-investment-grade credits) was up 5.31% at the close of last Friday.  In fact, the last time we saw such a high note of +5.3% YTD return in corporate high yield was back in 2021, when it wrapped up the year with a pretty grand finale of 7%.  Granted, the markets can be a bit of a dance-off and switch rhythms pretty quickly, but given the ongoing strength of high-yield credit in 2023, it seems those jitterbugs of recession worries might be a little more jitter than necessary.  Shifting the spotlight to regional banks and commercial real estate, recession soothsayers appear to be keeping an eye on the somewhat shaky dance floor of commercial real estate.  Particularly, they're watching out for certain urban areas where crime is doing the jitterbug and civic enforcement appears to have two left feet, like Chicago and San Francisco.  Chicago is currently holding a vacancy rate downtown of around 22%, partially due to crime but also because of the newfound popularity of the "work from home" dance step among professional office workers.  Despite this, in a recent Bloomberg interview, CBRE CEO Robert Sulentic seemed to be humming a different tune.  He highlighted that total commercial real estate loans make up only 1.5% of the total assets held by the banking system.  (article continues below) Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all.[Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  Sulentic believes the worst of the commercial loan instability has tangoed its way out the door, leaving a lot of investment money twiddling its thumbs on the sidelines, waiting for its turn to dance in the commercial real estate loan ballroom.  Now, our blog has been tracking the Regional Bank ETF (KRE) since the crisis took the stage in early March ’23. As of Friday, June 16th, 2023, the KRE was down 26.07% YTD, reaching its lowest point of -37.57% YTD in mid-May.  It gives one pause to hear Warren Buffett, in a May ’23 interview, express his belief that we might see more regional bank bankruptcies on the horizon.  And it's not a simple two-step.  The inverted yield curve is affecting all financials, but regional banks are especially feeling the pinch, given their tendency to rely on spread lending.  From my perspective, as soon as the market gets a whiff of a return to a normal yield curve, we might just see regional banks waltzing their way back into the spotlight.  On the data front, the S&P 500 forward 4-quarter estimate (FFQE) took a small dip last week, from $225.49 to $225.06. The PE ratio on the FFQE now stands at 19.6x, up from 18.6x in late March and 17.2x at the end of last year. The S&P 500 earnings yield has dropped to 5.1%, its lowest in over a year.  As we're nearing the end of Q2 and gearing up to review Q2's earnings in July, our understanding of Q1 ’23 earnings is fairly solid.  FedEx will release their results on Tuesday night, June 20th, 2023, which should continue the trends we've been seeing since mid-April.  To wrap up this dance lesson, let's remember an old adage that markets correct through time and/or price. If the S&P 500 can maintain its current level for the next couple of weeks, it'll go a long way toward correcting the current overbought condition.  For 2023, it seems that the investor who can patiently do the slow dance might just end up leading the floor.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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