Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
On 11 June, WR Berkley (WRB) increased its dividend by 12.5%, from 8¢ to 9¢ per share. The dividend is payable on 30 June to shareholders of record on 23 June.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner.
Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Growth is oxygen.
But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending.
This has stirred some uncertainty lately as retail stocks have tumbled by 13% over the past six months. This performance was especially disappointing since the S&P 500 held its ground.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
From commerce to culture, software is digitizing every aspect of our lives. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 8.8% over the last six months. This drop was disheartening since the S&P 500 stood firm.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Meta has taken a minority stake in Scale AI at a $29 billion valuation, appointing former Uber Eats chief Jason Droege as interim CEO as founder Alexandr Wang joins Meta's internal AI team.
The stock had gained over 5% after Morgan Stanley upgraded the stock last week, saying MP is the most vertically integrated rare earth metals company ex-China.
Over the last six months, Zurn Elkay’s shares have sunk to $36.04, producing a disappointing 9.4% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation.
Over the last six months, Proto Labs’s shares have sunk to $39.05, producing a disappointing 10.4% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation.
RB Global has had an impressive run over the past six months. While the S&P 500 has been flat, the stock has returned 13.1% and now trades at $107.33. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
Over the past six months, S&T Bancorp’s shares (currently trading at $37.29) have posted a disappointing 12.1% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation.
Over the last six months, Trustmark’s shares have sunk to $34.60, producing a disappointing 7.8% loss while the S&P 500 was flat. This might have investors contemplating their next move.
Over the past six months, Enterprise Financial Services’s shares (currently trading at $53.47) have posted a disappointing 9.7% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation.
I have recently written about the stock market rallying very far and very fast. A pullback was due. With Israel attacking Iran on Thursday night, the excuse for lower prices came...
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at vehicle parts distributors stocks, starting with FTAI Aviation (NASDAQ:FTAI).
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As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at apparel and accessories stocks, starting with Levi's (NYSE:LEVI).
Looking back on broadcasting stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including AMC Networks (NASDAQ:AMCX) and its peers.
