Barron's Streetwise Small-Cap Earnings Could Jump 20%. Plus, a Beer Mystery.
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Jan 9, 2026 In this engaging discussion, Jill Carey-Hall, a small- and mid-cap strategist at BofA Securities, shares her insights on the projected 20% earnings growth for small caps by 2026. She explains why small caps have lagged and discusses the implications of interest rate cuts favoring these companies. The conversation dives into a fascinating theory linking immigration policy to Corona beer sales and the fluctuating demand in the Hispanic market. Listeners also learn about BofA's top stock picks for the coming years.
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Small Caps Are Poised For A Cycle Turn
- Small caps have underperformed for over a decade and historical cycles suggest an outperformance is due.
- Valuation and a pending earnings recovery make 2026 a plausible turning point for small caps according to Jill Carey Hall.
Immigration Fears May Have Cut Beer Demand
- Wall Street is debating whether immigration‑related fears reduced Hispanic consumers' beer purchases and whether those effects will 'lap' out.
- If the decline is already priced in, lapping a lower baseline could help Constellation return to growth.
How Constellation Struck Beer Gold
- Constellation Brands grew massively after buying U.S. rights to Corona and Modelo following AB InBev's Grupo Modelo deal.
- Smart marketing moves like introducing cans and benefiting from demographic and boycott tailwinds propelled large investor gains.