The performance of consumer discretionary businesses is closely linked to economic cycles. Thankfully for the industry, demand trends seem to be healthy as discretionary stocks have gained 6.1% over the past six months. This performance has nearly mirrored the S&P 500.
Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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.
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
Ad verification company Integral Ad Science (NASDAQ:IAS) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 14% year on year to $153 million. Guidance for next quarter’s revenue was better than expected at $129.5 million at the midpoint, 1.9% above analysts’ estimates. Its GAAP profit of $0.09 per share was 20% below analysts’ consensus estimates.
News of the day for Feb. 28, 2025
Even unfilled tariff threats are beginning to alter consumer and business behavior, with markets stumbling on news of yet more sanctions on China.
After two years in the shadows, health stocks are back as a haven for investors navigating economic uncertainty.
Specialty pharmaceutical company ANI Pharmaceuticals (NASDAQ:ANIP) announced better-than-expected revenue in Q4 CY2024, with sales up 44.8% year on year to $190.6 million. The company’s full-year revenue guidance of $766 million at the midpoint came in 5.7% above analysts’ estimates. Its non-GAAP profit of $1.63 per share was 13.6% above analysts’ consensus estimates.
Pharmaceutical company Amneal Pharmaceuticals (NASDAQ:AMRX) reported Q4 CY2024 results beating Wall Street’s revenue expectations, with sales up 18.4% year on year to $730.5 million. The company’s full-year revenue guidance of $3.05 billion at the midpoint came in 4.5% above analysts’ estimates. Its non-GAAP profit of $0.12 per share was 21.1% below analysts’ consensus estimates.