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.
Software is eating the world, and virtually no business is left untouched by it. Companies bringing it to life have been rewarded with explosive earnings growth, and the upward trend shows no signs of stopping as the industry has posted a 18.2% gain over the past six months, beating the S&P 500 by 13.2 percentage points.
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
News of the day for March 5, 2025
3D printing company Stratasys (NASDAQ:SSYS) announced better-than-expected revenue in Q4 CY2024, but sales fell by 3.8% year on year to $150.4 million. On the other hand, the company’s full-year revenue guidance of $577.5 million at the midpoint came in 0.9% below analysts’ estimates. Its non-GAAP profit of $0.12 per share was in line with analysts’ consensus estimates.
Young adult apparel retailer Abercrombie & Fitch (NYSE:ANF) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 9.1% year on year to $1.58 billion. On the other hand, next quarter’s revenue guidance of $1.07 billion was less impressive, coming in 0.7% below analysts’ estimates. Its GAAP profit of $3.57 per share was 0.8% below analysts’ consensus estimates.
Packaged food company Campbell's (NASDAQ:CPB) fell short of the market’s revenue expectations in Q4 CY2024, but sales rose 9.3% year on year to $2.69 billion. Its non-GAAP profit of $0.74 per share was 2.2% above analysts’ consensus estimates.
In the waning days of 2024, as the world braced for the start of the second Trump presidency, there was a theory making the rounds that went like this: Sure, economists said his agenda could spell disaster but there’s at least one institution that would be able rein in Trump’s worst instincts — Wall Street!
Speciality vehicle provider REV (NYSE:REVG) announced better-than-expected revenue in Q4 CY2024, but sales fell by 10.4% year on year to $525.1 million. Its non-GAAP profit of $0.40 per share was 50.9% above analysts’ consensus estimates.
Investors are weighing whether Donald Trump might turn to unconventional ideas to try to bring the ballooning U.S. debt under control, after the president insisted he won't cut popular health and retirement benefits. Some of Trump's advisers have espoused unorthodox ideas in recent months, including forcing foreign governments to swap Treasuries for cheaper bonds in order to reduce interest payments and selling residency cards to rich foreigners at $5 million a pop. With many officials and economists saying that U.S. debt is on an unsustainable path, investors in U.S. bonds, currency and equities markets are starting to pay more attention to these ideas.