Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. But they’re also double-edged swords as they often lag in booming conditions, and this pattern has persisted recently. Over the past six months, the industry has recorded a loss of 7.9%, a far cry from the S&P 500’s 6.7% ascent.
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.
Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can lead to some stock price volatility, but over the past six months, the industry has stayed on track as its 6.2% return was close to the S&P 500’s.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Still, their generally high capital requirements expose them to the ups and downs of economic cycles, and the industry’s six-month return of 1.8% has fallen short of the S&P 500’s 6.7% rise.
News of the day for March 6, 2025
Industrial and safety product distributor Distribution Solutions (NASDAQ:DSGR) reported Q4 CY2024 results exceeding the market’s revenue expectations, with sales up 18.6% year on year to $480.5 million. Its non-GAAP profit of $0.42 per share was 26% above analysts’ consensus estimates.
Used-car retailer America’s Car-Mart (NASDAQ:CRMT) reported Q4 CY2024 results topping the market’s revenue expectations, with sales up 8.7% year on year to $325.7 million. Its GAAP profit of $0.37 per share was significantly above analysts’ consensus estimates.
Real estate technology company The Real Brokerage (NASDAQ:REAX) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 93.4% year on year to $350.6 million. Its GAAP loss of $0.03 per share was $0.02 above analysts’ consensus estimates.
The Chinese tech giant unveiled its latest AI reasoning model on Thursday, saying it beats rivals from OpenAI and DeepSeek. The day before another company launched a “general AI agent” called Manus.
Morning Bid U.S. We've revamped Morning Bid U.S. to offer you more in-depth markets analysis and commentary. The European Central Bank will almost certainly deliver an interest rate cut today despite the recent surge in euro area government yields, but the central bank may be forced to pause after today as it assesses Germany's extraordinary fiscal reboot.