Dental and medical products company Henry Schein (NASDAQ:HSIC) reported Q3 CY2025 results exceeding the market’s revenue expectations, with sales up 5.2% year on year to $3.34 billion. Its GAAP profit of $0.84 per share was 16.9% below analysts’ consensus estimates.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Precision measurement and sensing technologies provider Vishay Precision (NYSE:VPG) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 5.3% year on year to $79.73 million. The company expects next quarter’s revenue to be around $78 million, close to analysts’ estimates. Its non-GAAP profit of $0.26 per share was 30% above analysts’ consensus estimates.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
The Caviar Cruise method identifies quality investments like NYT, highlighting its strong financials, zero debt, and excellent profit quality for long-term growth.
ConocoPhillips has lagged both the broader market over the past year, yet analysts continue to express confidence in the company’s longer-term growth outlook.
Defense contractor Leidos (NYSE:LDOS) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 6.7% year on year to $4.47 billion. The company expects the full year’s revenue to be around $17.13 billion, close to analysts’ estimates. Its non-GAAP profit of $3.05 per share was 12.3% above analysts’ consensus estimates.
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. On the other hand, they usually underperform during bull runs,
and this paradigm has rung true over the past six months as the sector’s -7.5% decline paled in comparison to the S&P 500’s 20% gain.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
The Nasdaq 100 (^NDX) is home to some of the biggest success stories in tech and growth investing.
However, certain stocks in the index face challenges like profitability concerns, rising costs, or shifts in market trends.
Retailers are adapting their business models as technology changes how people shop. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry’s 12.5% gain has trailed the S&P 500 by 7.5 percentage points.
Research and advisory firm Gartner (NYSE:IT) met Wall Streets revenue expectations in Q3 CY2025, with sales up 2.7% year on year to $1.52 billion. Its non-GAAP profit of $2.76 per share was 13.7% above analysts’ consensus estimates.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
December S&P 500 E-Mini futures (ESZ25) are down -1.01%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -1.31% this morning as quarterly results from AI bellwether Palantir failed to impress investors and Wall Street executives cautioned abo...
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Manufacturing company Stanley Black & Decker (NYSE:SWK) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $3.76 billion. Its non-GAAP profit of $1.43 per share was 19.8% above analysts’ consensus estimates.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But increasing competition from AI-driven upstarts has tempered enthusiasm,
limiting the industry’s gains to 18% over the past six months.
This return lagged the S&P 500’s 20% climb.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Retailers are overhauling their operations as technology redefines the shopping experience. Still, demand can be volatile as the industry is exposed to the ups and downs of consumer spending.
This has stirred some uncertainty lately as retail stocks have lagged the market over the past six months, posting a return of 12.5% compared to 20% for the S&P 500.
While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner.
Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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.
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.
Packaging manufacturer Ball (NYSE:BLL) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 9.6% year on year to $3.38 billion. Its GAAP profit of $1.18 per share was 29.2% above analysts’ consensus estimates.
The Australian dollar weakened to below 0.652 USD, marking its fifth consecutive day of decline after the Reserve Bank of Australia left the cash rate unchanged, fully aligning with market expectations.
Intuitive Surgical crushed earnings expectations in October, and the stock soared. Is this high-flying robotic surgery leader still worth buying at these prices?
Photronics (PLAB) is a potential value stock with strong valuation metrics, a healthy debt-free balance sheet, and solid profitability in the semiconductor industry.
