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Download the Full Report for 10 Stock Recommendations Across Healthcare’s Most Defensive Sub-Industries
This report features detailed analysis on AbbVie (ABBV), Amgen (AMGN), Bristol-Myers Squibb (BMY), Cardinal Health (CAH), Cencora (COR), DaVita (DVA), IQVIA Holdings (IQV), McKesson (MCK), Merck (MRK), and Eli Lilly (LLY)—each selected for their competitive advantages, defensive business models, and ability to deliver stable returns regardless of energy price volatility.

The dichotomy between large- and small-cap performance persisted into the second half of 2025. Small-caps trailed large-caps by nearly 8 percentage points year-to-date (YTD) through August 25, 2025, but technical indicators suggested this gap was closing.

• S&P 500 Index (large-caps): +9.48% YTD as of August 2025
• S&P 600 Small-Cap Index: +1.55% YTD as of August 2025

Small-cap breadth (lower chart) held near all-time highs, while price (upper chart) lagged, a pattern historically associated with sustained advances.

Small-cap underperformance was largely attributable to the higher interest rate environment, which makes smaller companies’ balance sheets less attractive, as they must borrow more frequently to grow and face less favorable debt terms than large, established companies.

1. Market Breadth: The Advance-Decline Line eclipsed its June 2021 former all-time high in October 2025 and has continued higher since then.
2. Demand Intensity: The percentage of smaller stocks contributing to index gains rose significantly. In addition, internal weakness as measured by the Percent of Small- and Mid-Caps 20% or More Below 52-Week Highs contracted. This means that Demand for the weakest stocks expanded, indicating that all strength levels of smaller stocks were engaged in the rally, with a healthy risk appetite apparent.
3. Relative Strength: Broke short-term downtrend vs. the S&P 500.

The full report includes detailed charts showing historical precedents from 2021 and 2023, plus specific-sector Power Rating analysis.

• Gradually build small-cap positions while remaining selective
• Monitor for breakouts to new highs in price, accompanied by strong technical indicators
• Focus on the five heaviest-weighted sectors (see below)
• Wait for clear confirmation of sustained breakouts before becoming more aggressive

The technical setup for small-caps is the most constructive it’s been in over a year. While confirmation through breakouts is still needed, the risk/reward for gradually building positions in the five key sectors (Financials, Industrials, Information Technology, Consumer Discretionary, and Health Care) is becoming increasingly attractive.

Lowry Research has provided institutional-grade technical analysis since 1938, tracking market breadth and demand indicators through multiple market cycles.

• Subscription revenue grew from 8% to 36% of total revenue since 2021
• Assets under custody reached $516 billion (+95% Y/Y)
• USDC stablecoin growth could generate $1-2 billion in incremental pre-tax profit
• 2026 crypto IPO pipeline ($80B+ valuations) validates institutional adoption

• Crypto price volatility impacts trading volumes
• Regulatory uncertainty across jurisdictions
• Traditional financial institutions entering at scale

• 2026 marks crypto’s transition from speculative asset to institutional infrastructure. Coinbase’s transformation, combined with record IPO validation, positions it as the primary beneficiary of this secular shift.
• $5-8B incremental revenue opportunity, with stablecoin growth as the highest probability catalyst makes COIN our top pick for institutional crypto exposure.

Watch the video to learn more about 2026: The Year Crypto Goes Institutional and download the full thematic with detailed financial models, valuation analysis, and comprehensive risk assessments.

President Trump has proposed capping credit card interest rates at 10%, a significant reduction from the current industry average of approximately 21%. This change would dramatically alter the consumer finance landscape. Alexander Yokum, CFA, an Equity Analyst and Senior Vice President at CFRA, evaluates the potential impact of the proposed cap. He emphasizes that Trump lacks explicit authority to implement such a measure, making congressional approval likely necessary for its enactment.

• Earnings Impact:
  We view Synchrony Financial and Capital One as most vulnerable to the proposal given their outsized exposure to credit card loans and heavy reliance on net interest income. American Express may experience an earnings decline of more than 50%, while large banks with card portfolios could face earnings pressure above 10%.
• Limited Scope:
  The cap would likely apply only to new balances and last for one year, allowing issuers to potentially recover once normal rates resume.
• Issuer Response:
  If enacted, CFRA expects tighter credit standards, reduced rewards, higher fees, and lower marketing spend, with negative implications for lower-income consumers. With these counteractions, the earnings decline could be partially offset.
• Low Probability of Passage:
  Similar proposals have failed in Congress, and recent regulatory actions suggest a pro-bank environment, limiting the chances of implementation.

Want the full analyst perspective?

Access the full video and explore CFRA’s latest insights on the U.S. credit card space.

For more, visit “The Credit Card Renaissance: Building Tomorrow’s Payment Empire,” where Yokum discusses how credit card issuers have been turning innate spending impulses into a payment empire – and which stocks could deliver outsized returns as four powerful tailwinds converge.

Discover why CFRA’s top Financials analyst is calling 2026 a breakout year for credit card issuers—and which stocks could deliver outsized returns as four powerful tailwinds converge.

• Credit card issuer market share has nearly doubled from 18% to 35% since 2016 as issuers have mastered behavioral economics, exploiting the gap between consumer intentions and spending behavior to expand rate spreads to a record 17% above the federal funds rate while keeping reward increases minimal at just 19% over the decade.
• The strategic pivot toward affluent consumers—who now control 50% of all U.S. spending despite representing just 10% of earners—is delivering superior credit quality and fee tolerance, exemplified by premium card annual fees reaching $895. Even at this elevated level, upgrades continue to outpace downgrades as affluent customers show minimal sensitivity to pricing changes.
• Issuers have dramatically improved their funding economics by building deposit franchises that significantly reduced loan-to-deposit ratios across the sector, offering premium banking features like 1% checking yields and debit rewards that attract low-cost deposits more effectively than traditional banks, which are constrained by low-yielding mortgage portfolios.
• The regulatory environment has shifted from a headwind to a tailwind as the Consumer Financial Protection Bureau abandoned its proposed 75% late fee reduction, allowing issuers to maintain the elevated interest rates they had preemptively implemented while avoiding fee cuts altogether. This double benefit is expanding net interest margins. With capital ratios well above regulatory minimums, credit quality improving due to stringent 2023-2024 underwriting restrictions, and share buybacks accelerating toward Covid-19-era levels as credit normalizes, the credit card issuer space offers compelling investment opportunities.

Don’t miss this opportunity to capitalize on the Credit Card Renaissance and its strong 2026 outlook. Download the in-depth equity research report, which includes detailed financial analysis and expert investment recommendations, today.

Get the latest perspective on the proposed 10% credit card rate cap in CFRA’s new video, “Proposed 10% Credit Card Rate Cap: Impact Analysis.” In this update, Yokum examines the policy proposal, outlines potential effects on issuers and consumers, and highlights key considerations for the broader payments market.