Calamos Manager Sees 2027 Small-Cap Surge, Taps Fintechs Dave and Ethos

Calamos Investments portfolio manager Brandon Nelson named fintech firms Dave Inc. and Ethos Technologies as top small-cap picks, projecting a 2027 breakout as large-cap earnings growth decelerates. FactSet data cited by MarketWatch show S&P 500 weighted EPS growth slowing to 15.1% next year from 34.8% in 2026, while iShares Russell 2000 ETF (IWM) holdings' weighted EPS is seen jumping 49% to $13.69. Dave's CashAI system bypasses traditional FICO scoring for real-time credit assessment. Its second-quarter monthly transacting members rose 17% year over year to 3.08 million. Analysts expect full-year revenue up 32% to $730 million and EPS up 50% to $57.23. Dave is testing a Mastercard (MA)-networked buy-now-pay-later service, Dave Flex. Ethos, which listed in January 2026, sells life insurance via mobile app and a ChatGPT application, using direct-to-consumer and partner channels with roughly 15,000 agents. Second-quarter revenue doubled to $190 million. Analysts forecast a $2.08 per-share loss this year, swinging to $1.06 EPS in 2027, with nine FactSet analysts rating it Buy.