Growth is oxygen.
But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
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.
Software is rapidly reducing operating expenses for businesses. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier,
but they have weighed on the returns lately as the industry has pulled back by 1.8% over the past six months. This drawdown is a far cry from the S&P 500’s 14.4% ascent.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
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.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
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.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Jared Isaacman repeatedly refused to say whether Elon Musk was present when Donald Trump offered him the NASA administrator job, prompting senators to question his ties to SpaceX and raising fresh concerns about potential conflicts of interest.
The past six months have been a windfall for Sanmina’s shareholders. The company’s stock price has jumped 79.4%, hitting $157.78 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
AAR has had an impressive run over the past six months as its shares have beaten the S&P 500 by 12.2%. The stock now trades at $82.65, marking a 26.5% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Although STERIS (currently trading at $259.38 per share) has gained 7.1% over the last six months, it has trailed the S&P 500’s 14.4% return during that period. This may have investors wondering how to approach the situation.
Over the past six months, Honeywell’s stock price fell to $193.58. Shareholders have lost 14.9% of their capital, which is disappointing considering the S&P 500 has climbed by 14.4%. This might have investors contemplating their next move.
CarGurus trades at $36 per share and has stayed right on track with the overall market, gaining 12.5% over the last six months. At the same time, the S&P 500 has returned 14.4%.
Over the past six months, Concrete Pumping’s shares (currently trading at $6.64) have posted a disappointing 6.5% loss, well below the S&P 500’s 14.4% gain. This might have investors contemplating their next move.
Atkore currently trades at $66.22 per share and has shown little upside over the past six months, posting a small loss of 1.5%. The stock also fell short of the S&P 500’s 14.4% gain during that period.
Since June 2025, OFG Bancorp has been in a holding pattern, posting a small loss of 1.3% while floating around $40.69. The stock also fell short of the S&P 500’s 14.4% gain during that period.
West Pharmaceutical Services’s 34.6% return over the past six months has outpaced the S&P 500 by 20.2%, and its stock price has climbed to $284.57 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Since June 2025, FirstSun Capital Bancorp has been in a holding pattern, posting a small loss of 0.7% while floating around $34.65. The stock also fell short of the S&P 500’s 14.4% gain during that period.
MasTec currently trades at $218.54 and has been a dream stock for shareholders. It’s returned 249% since December 2020, tripling the S&P 500’s 84.3% gain. The company has also beaten the index over the past six months as its stock price is up 38.6% thanks to its solid quarterly results.
Old Republic International has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 18% to $44.15 per share while the index has gained 14.4%.
Over the past six months, WideOpenWest has been a great trade, beating the S&P 500 by 8.6%. Its stock price has climbed to $5.19, representing a healthy 23% increase. This performance may have investors wondering how to approach the situation.
Byline Bancorp trades at $29.19 per share and has stayed right on track with the overall market, gaining 13.1% over the last six months. At the same time, the S&P 500 has returned 14.4%.
What a brutal six months it’s been for First Advantage. The stock has dropped 23.4% and now trades at $13.95, rattling many shareholders. This may have investors wondering how to approach the situation.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Universal Logistics (NASDAQ:ULH) and the rest of the ground transportation stocks fared in Q2.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the health insurance providers industry, including CVS Health (NYSE:CVS) and its peers.
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 Q3. Today, we are looking at social networking stocks, starting with Meta (NASDAQ:META).
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the travel and vacation providers industry, including Marriott (NASDAQ:MAR) and its peers.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the media industry, including Warner Music Group (NASDAQ:WMG) and its peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at The Trade Desk (NASDAQ:TTD) and its peers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how electronic components stocks fared in Q3, starting with nLIGHT (NASDAQ:LASR).
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the property & casualty insurance stocks, including NMI Holdings (NASDAQ:NMIH) and its peers.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at F.N.B. Corporation (NYSE:FNB) and the best and worst performers in the regional banks industry.
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 Q3. Today, we are looking at gas and liquid handling stocks, starting with Flowserve (NYSE:FLS).
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Republic Bancorp (NASDAQ:RBCAA) and the best and worst performers in the regional banks industry.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the electronic components & manufacturing industry, including Knowles (NYSE:KN) and its peers.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the sit-down dining industry, including Brinker International (NYSE:EAT) and its peers.
Let’s dig into the relative performance of United Rentals (NYSE:URI) and its peers as we unravel the now-completed Q3 specialty equipment distributors earnings season.
Let’s dig into the relative performance of Alta (NYSE:ALTG) and its peers as we unravel the now-completed Q3 specialty equipment distributors earnings season.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Timken (NYSE:TKR) and its peers.
IQVIA Holdings has significantly outperformed the broader S&P 500 Index in recent months, and analysts remain strongly bullish on the stock’s prospects.
Looking back on home builders stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Taylor Morrison Home (NYSE:TMHC) and its peers.
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the dental equipment & technology stocks, including Henry Schein (NASDAQ:HSIC) and its peers.
