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.
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges. However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. The new habits they’re cultivating are also unlocking the next leg of growth for the industry, which has gained 7.8% over the past six months. Investing here would have been wise - at the same time, the S&P 500 was flat.
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.
From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling the industry have also led to strong returns for SaaS stocks lately as they’ve gained 6.4% over the past six months. Investing here would have been wise - at the same time, the S&P 500 was flat.
Whether you see them or not, industrials businesses play a crucial part in our daily activities. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 8% over the past six months. This performance was disappointing since the S&P 500 stood firm.
From fast food to fine dining, restaurants play a vital societal role. But it’s not all sunshine and rainbows as they’re notoriously hard to run thanks to perishable ingredients, labor shortages, or volatile consumer spending. Unfortunately, these factors have spelled trouble for the industry as it has shed 3.9% over the past six months. This performance was discouraging since the S&P 500 held its ground.
While RBC has scaled these businesses, its market share is "relatively small" and it still has room to grow, McKay said at the top Canadian bank's first investor day in seven years. Capital markets have become a vital revenue stream for banks in recent years. The expansion could intensify competition between RBC and its rival heavyweights on Wall Street such as JPMorgan Chase and Goldman Sachs.
Shares of major carmakers and auto-parts manufacturers fell after President Trump’s latest tariff plans dashed hopes for relief on the trade front.