Whether that's just simply relative PE or our more complicated relative valuation model," DeSanctis said.
Still, he added that small caps have struggled to escape the headwinds from the regional banking crisis earlier in the year.
How to play small caps There's one sector both Wolfe's Ginsberg and DeSanctis like when it comes to small caps: energy.
He added that small caps in the cyclicals market have traded under 13 times earnings — and better than secular growth names.
"I think a lot of stuff has already been priced into small cap stocks," said DeSanctis.
Persons:
Russell, BTIG, Wolfe, Rob Ginsberg, Ginsberg, We're, Jefferies, Steven DeSanctis, that's, DeSanctis, Wolfe's Ginsberg, Michael Bloom
Organizations:
Nasdaq, Wolfe Research, Energy