John Rogers, chairman and co-CEO of Ariel Investments, highlighted Covista, a for-profit education company, as a promising small-cap stock during a CNBC interview. He expressed concern over the current market volatility caused by the AI craze, which he believes has inflated stock prices across the board.
Covista, which focuses on educating healthcare professionals, has seen its shares rise 20% this year, reflecting its potential amid a global shortage of doctors and nurses. Rogers praised CEO Stephen Beard for effectively steering the company and indicated that there is significant growth potential ahead.
Additionally, he mentioned financial stocks like Lazard and Carlyle Group, which have faced declines of 16% and 29% respectively this year, but are now trading at historically low valuations. Rogers believes that the current deregulated environment will lead to increased deal-making, benefiting firms like Lazard, which he described as a premier investment banking company.
He also noted the strong leadership at Lazard under CEO Peter Orszag and highlighted the value in smaller financial services companies. Other small-cap stocks he owns include Littelfuse and Knowles, which have surged approximately 89% and 90% this year, respectively