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.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 15.5%. This drop was worse than the S&P 500’s 10% fall.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have caused the industry to lag recently as services stocks have collectively shed 12.8% over the past six months. This drawdown was worse than the S&P 500’s 10% decline.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have caused the industry to lag recently as services stocks have collectively shed 12.8% over the past six months. This drawdown was worse than the S&P 500’s 10% fall.
The central bank’s proposed changes would reduce year-over-year fluctuations in capital requirements. The regulator also plans to announce further tweaks – around transparency – later this year.
Americans are nervous about their investment portfolios. And it’s easy to see why, given escalating trade tensions and gloomy GDP forecasts.
Shiba Inu (CRYPTO: SHIB) has amassed a following among a certain group of cryptocurrency enthusiasts who value community and follow the hype. It probably helps that Shiba Inu's price has climbed astronomically since its launch in August 2020, despite the extreme volatility. Shiba Inu currently carries a market cap of about $7 billion.
A heavy slate of U.S. company results in the coming week will test a stock market shaken by a U.S. trade policy overhaul that upended the outlook for the global economy and corporate America. Investors remain on edge after President Donald Trump's sweeping April 2 tariff announcement stunned markets and sparked some of the most volatile trading since the onset of the COVID-19 pandemic five years ago. Tesla and Google parent Alphabet - two of the so-called Magnificent Seven megacap companies whose shares have faltered after two years of stock leadership - are among those closely watched for financial results as investors seek guidance about the fallout from tariffs that are very much in flux.
