Small-cap stocks are showing a bullish signal for a potential rally as earnings accelerate, valuations are appealing, and the market expects significant interest rate cuts. Data from LSEG, Bloomberg, and Barclays Research, shared by @WallStJesus, indicates a shift challenging mega-cap stock dominance. Small-cap forward earnings growth has risen by 3.7% year-to-date, and EPS growth is projected to surpass large caps (excluding tech) until 2026, as per a tweet on September 11, 2025. In Q2, small-cap EPS growth surged by 12.1% YoY despite a 5.0% sales drop, showcasing strong operating leverage. The percentage of unprofitable small-cap firms is decreasing. The full story is found on Benzinga.com.