Recent Articles from StockStory

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.

Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.

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.

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.

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 has pulled back by 2%. This drop was disheartening since the S&P 500 gained 5.7%.

"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

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.

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

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.

Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.

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.

Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks. But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.

Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. 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 tumbled by 2% over the past six months. This drawdown was discouraging since the S&P 500 returned 5.7%.

Growth boosts valuation multiples, but it doesn’t always last forever. Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.

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.

Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.

Theater company AMC Entertainment (NYSE:AMC) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 35.6% year on year to $1.40 billion. Its non-GAAP loss of $0 per share was significantly above analysts’ consensus estimates.

Online used car auction platform ACV Auctions (NASDAQ:ACVA) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 20.6% year on year to $193.7 million. Next quarter’s revenue guidance of $200.5 million underwhelmed, coming in 1.9% below analysts’ estimates. Its GAAP loss of $0.04 per share was $0.02 above analysts’ consensus estimates.

Broadband and telecommunications services provider WideOpenWest (NYSE:WOW) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 9.2% year on year to $144.2 million. Its GAAP loss of $0.22 per share was 18.9% below analysts’ consensus estimates.

Insurance management company Erie Indemnity (NASDAQ:ERIE) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 7% year on year to $1.06 billion. Its non-GAAP profit of $3.35 per share was 5.7% below analysts’ consensus estimates.

Global media and entertainment company iHeartMedia (NASDAQ:IHRT) reported Q2 CY2025 results topping the market’s revenue expectations, but sales were flat year on year at $933.7 million. The company expects next quarter’s revenue to be around $982.9 million, close to analysts’ estimates. Its GAAP loss of $0.54 per share was 98.1% below analysts’ consensus estimates.

Programmatic advertising platform Pubmatic (NASDAQ: PUBM) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 5.7% year on year to $71.1 million. On the other hand, next quarter’s revenue guidance of $63.5 million was less impressive, coming in 10.8% below analysts’ estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.

Action camera company GoPro (NASDAQ:GPRO) posted $152.6 million of revenue in Q2 CY2025, down 18% year on year. Its non-GAAP loss of $0.08 per share was 33.3% below analysts’ consensus estimates.

Visual content marketplace Getty Images (NYSE:GETY) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 2.5% year on year to $234.9 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $949.5 million at the midpoint. Its non-GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.

Aerospace and defense company Mercury Systems (NASDAQ:MRCY) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 9.9% year on year to $273.1 million. Its non-GAAP profit of $0.47 per share was significantly above analysts’ consensus estimates.

Waste and recycling services provider Quest Resource (NASDAQ:QRHC) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 18.6% year on year to $59.54 million. Its non-GAAP loss of $0.04 per share was significantly below analysts’ consensus estimates.

Fuel cell technology Plug Power (NASDAQ:PLUG) announced better-than-expected revenue in Q2 CY2025, with sales up 21.4% year on year to $174 million. Its GAAP loss of $0.20 per share was 32.6% below analysts’ consensus estimates.

Check out the companies making headlines yesterday:

Healthcare distributor and services company Cardinal Health (NYSE:CAH) missed Wall Street’s revenue expectations in Q2 CY2025, with sales flat year on year at $60.16 billion. Its non-GAAP profit of $2.08 per share was 2.4% above analysts’ consensus estimates.

E-commerce and gaming company Sea (NYSE:SE) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 31.6% year on year to $5.26 billion. Its GAAP profit of $0.65 per share was 6.4% below analysts’ consensus estimates.

Fashion brand Ralph Lauren (NYSE:RL) announced better-than-expected revenue in Q2 CY2025, with sales up 13.7% year on year to $1.72 billion. Its non-GAAP profit of $3.77 per share was 7.8% above analysts’ consensus estimates.

Media broadcasting company Sinclair (NASDAQ:SBGI) fell short of the market’s revenue expectations in Q2 CY2025, with sales falling 5.4% year on year to $784 million. Next quarter’s revenue guidance of $764 million underwhelmed, coming in 3.6% below analysts’ estimates. Its non-GAAP loss of $0.94 per share was 12.7% above analysts’ consensus estimates.

Heating and cooling solutions company AAON (NASDAQ:AAON) fell short of the market’s revenue expectations in Q2 CY2025, with sales flat year on year at $311.6 million. Next quarter’s revenue guidance of $335.4 million underwhelmed, coming in 14.3% below analysts’ estimates. Its non-GAAP profit of $0.22 per share was 32.5% below analysts’ consensus estimates.

Biopharmaceutical company Gilead Sciences (NASDAQ:GILD) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 1.8% year on year to $7.08 billion. On the other hand, the company’s full-year revenue guidance of $28.5 billion at the midpoint came in 0.8% below analysts’ estimates. Its non-GAAP profit of $2.01 per share was 2.7% above analysts’ consensus estimates.

Residential solar energy company Sunrun (NASDAQ:RUN) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 8.7% year on year to $569.3 million. Its non-GAAP profit of $1.07 per share was significantly above analysts’ consensus estimates.

Aerospace and defense company AerSale (NASDAQ:ASLE) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 39.3% year on year to $107.4 million. Its non-GAAP profit of $0.20 per share was significantly above analysts’ consensus estimates.

Lift truck and material handling solutions manufacturer Hyster-Yale Materials Handling (NYSE:HY) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 18.1% year on year to $956.6 million. Its non-GAAP loss of $0.79 per share was significantly below analysts’ consensus estimates.

Performance marketing company QuinStreet (NASDAQ:QNST) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 32.1% year on year to $262.1 million. On the other hand, next quarter’s revenue guidance of $280 million was less impressive, coming in 5.1% below analysts’ estimates. Its non-GAAP profit of $0.25 per share was in line with analysts’ consensus estimates.

Solar power systems company SolarEdge (NASDAQ:SEDG) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 9.1% year on year to $289.4 million. On top of that, next quarter’s revenue guidance ($335 million at the midpoint) was surprisingly good and 10.2% above what analysts were expecting. Its non-GAAP loss of $0.81 per share was 3.5% above analysts’ consensus estimates.

Healthcare professional network Doximity (NYSE:DOCS) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 15.2% year on year to $145.9 million. On top of that, next quarter’s revenue guidance ($157.5 million at the midpoint) was surprisingly good and 5% above what analysts were expecting. Its non-GAAP profit of $0.36 per share was 17.2% above analysts’ consensus estimates.

Cloud monitoring software company Datadog (NASDAQ:DDOG) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 28.1% year on year to $826.8 million. On top of that, next quarter’s revenue guidance ($849 million at the midpoint) was surprisingly good and 3.7% above what analysts were expecting. Its non-GAAP profit of $0.46 per share was 12.8% above analysts’ consensus estimates.

Business management solutions provider Barrett Business Services (NASDAQ:BBSI) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 10% year on year to $307.7 million. Its non-GAAP profit of $0.70 per share was 1.8% above analysts’ consensus estimates.

Government services provider Maximus (NYSE:MMS) announced better-than-expected revenue in Q2 CY2025, with sales up 2.5% year on year to $1.35 billion. The company expects the full year’s revenue to be around $5.43 billion, close to analysts’ estimates. Its non-GAAP profit of $2.16 per share was 40.7% above analysts’ consensus estimates.

Construction equipment company Astec (NASDAQ:ASTE) fell short of the market’s revenue expectations in Q2 CY2025, with sales falling 4.4% year on year to $330.3 million. Its non-GAAP profit of $0.88 per share was 58.6% above analysts’ consensus estimates.

Medical device company Zimmer Biomet (NYSE:ZBH) announced better-than-expected revenue in Q2 CY2025, with sales up 7% year on year to $2.08 billion. Its non-GAAP profit of $2.07 per share was 4.8% above analysts’ consensus estimates.

Industrial distributor DXP Enterprises (NASDAQ:DXPE) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 11.9% year on year to $498.7 million. Its non-GAAP profit of $1.43 per share was 2.9% above analysts’ consensus estimates.

Jackson Financial’s second quarter results generated a positive market response, reflecting management’s focus on growing its product mix and strengthening capital generation. CEO Laura Prieskorn highlighted robust gains in the Registered Index-Linked Annuity (RILA) segment and improvements in variable annuity net outflows, while the company’s disciplined asset allocation into higher-yielding classes contributed to greater spread income. Prieskorn emphasized, “RILA now accounts for nearly one-third of total Retail Annuity sales, underscoring Jackson’s leadership in meeting the growing demand for solutions that offer participation in equity market growth with downside protection.”

Hyster-Yale Materials Handling’s second quarter was marked by operational and market headwinds, as the company reported an 18.1% year-over-year revenue decline and a significant miss on non-GAAP earnings per share. The market responded negatively, with management citing persistent economic uncertainty and fluctuating tariffs as central challenges. CEO Rajiv Prasad noted, “Fluctuating tariff levels impacting demand and cost structures require us to maintain nimble and responsive.” Order activity slowed, especially as customers delayed capital purchases amid tariff-driven cost uncertainty and softer demand in both Europe and the Americas. The company’s decision not to retroactively raise prices on existing orders, though aimed at maintaining customer trust, contributed to a temporary lag in cost recovery and pressured near-term profitability.

Genetic testing company Natera (NASDAQ:NTRA). reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 32.2% year on year to $546.6 million. The company’s full-year revenue guidance of $2.06 billion at the midpoint came in 4.2% above analysts’ estimates. Its non-GAAP loss of $0.74 per share was 24.5% below analysts’ consensus estimates.

Hair care company Olaplex (NASDAQ:OLPX) announced better-than-expected revenue in Q2 CY2025, with sales up 2.3% year on year to $106.3 million. The company expects the full year’s revenue to be around $420.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.01 per share was in line with analysts’ consensus estimates.

Low code software development platform provider Appian (Nasdaq: APPN) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 16.5% year on year to $170.6 million. Guidance for next quarter’s revenue was better than expected at $174 million at the midpoint, 1.8% above analysts’ estimates. Its non-GAAP profit of $0 per share was significantly above analysts’ consensus estimates.

Smart home company SmartRent (NYSE:SMRT) fell short of the market’s revenue expectations in Q2 CY2025, with sales falling 21% year on year to $38.31 million. Its non-GAAP loss of $0.06 per share was $0.03 below analysts’ consensus estimates.

Cybersecurity software maker Rapid7 (NASDAQ:RPD) announced better-than-expected revenue in Q2 CY2025, with sales up 3% year on year to $214.2 million. The company expects next quarter’s revenue to be around $216 million, close to analysts’ estimates. Its non-GAAP profit of $0.58 per share was 30.8% above analysts’ consensus estimates.

Retirement solutions provider Jackson Financial (NYSE:JXN) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 1.4% year on year to $1.75 billion. Its non-GAAP profit of $4.87 per share was 5% above analysts’ consensus estimates.

Glass and windows manufacturer Tecnoglass (NYSE:TGLS) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 16.3% year on year to $255.5 million. The company expects the full year’s revenue to be around $1 billion, close to analysts’ estimates. Its non-GAAP profit of $1.03 per share was 7.5% above analysts’ consensus estimates.

MSA Safety’s first quarter results were met with a positive market response, driven by continued strength in its Detection segment and resilient demand across product categories. Management credited the quarter’s outperformance to higher Detection sales and customer shipment acceleration ahead of anticipated tariffs. CEO Steven Blanco cited “excellent growth in Detection” and emphasized the company’s ability to navigate a dynamic operating environment. Gross margins faced pressure from foreign currency headwinds, particularly in Latin America, but this was partially offset by favorable product mix and disciplined expense management.

Voice AI recognition company SoundHound (NASDAQ:SOUN) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 217% year on year to $42.68 million. Its non-GAAP loss of $0.03 per share was $0.02 above analysts’ consensus estimates.

Semiconductor maker Himax Technologies (NASDAQ:HIMX) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 10.4% year on year to $214.8 million. Its non-GAAP profit of $0.10 per share was in line with analysts’ consensus estimates.

Analog chipmaker Microchip Technology (NASDAQ:MCHP) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 13.4% year on year to $1.08 billion. The company expects next quarter’s revenue to be around $1.13 billion, close to analysts’ estimates. Its non-GAAP profit of $0.27 per share was 13.2% above analysts’ consensus estimates.

Egg and butter company Vital Farms (NASDAQ:VITL) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 25.4% year on year to $184.8 million. The company’s full-year revenue guidance of $770 million at the midpoint came in 3.3% above analysts’ estimates. Its non-GAAP profit of $0.36 per share was 31.7% above analysts’ consensus estimates.

Foodservice packaging supplier Karat Packaging (NASDAQ:KRT) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 10.1% year on year to $124 million. On the other hand, next quarter’s revenue guidance of $121.2 million was less impressive, coming in 2.6% below analysts’ estimates. Its non-GAAP profit of $0.57 per share was 5% below analysts’ consensus estimates.

Global pharmaceutical company Eli Lilly (NYSE:LLY) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 37.6% year on year to $15.56 billion. The company’s full-year revenue guidance of $61 billion at the midpoint came in 1.4% above analysts’ estimates. Its non-GAAP profit of $6.31 per share was 12.9% above analysts’ consensus estimates.

Engineered products manufacturer ESCO (NYSE:ESE) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 13.6% year on year to $296.3 million. The company’s full-year revenue guidance of $1.09 billion at the midpoint came in 9% below analysts’ estimates. Its non-GAAP profit of $1.60 per share was 2.8% below analysts’ consensus estimates.

Laser company nLIGHT (NASDAQ:LASR) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 22.2% year on year to $61.74 million. On top of that, next quarter’s revenue guidance ($64.5 million at the midpoint) was surprisingly good and 13.8% above what analysts were expecting. Its non-GAAP profit of $0.06 per share was significantly above analysts’ consensus estimates.

Personal care company The Honest Company (NASDAQ:HNST) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, but sales were flat year on year at $93.46 million. Its non-GAAP profit of $0.04 per share was in line with analysts’ consensus estimates.

Restaurant company Texas Roadhouse (NASDAQ:TXRH) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 12.7% year on year to $1.51 billion. Its non-GAAP profit of $1.86 per share was 2.5% below analysts’ consensus estimates.

Animal health company Elanco (NYSE:ELAN) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 4.8% year on year to $1.24 billion. Guidance for next quarter’s revenue was better than expected at $1.10 billion at the midpoint, 0.9% above analysts’ estimates. Its non-GAAP profit of $0.26 per share was 29.5% above analysts’ consensus estimates.

Pharmaceutical company Amphastar Pharmaceuticals (NASDAQAMPH) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 4.4% year on year to $174.4 million. Its non-GAAP profit of $0.85 per share was 14.6% above analysts’ consensus estimates.

Pharmaceutical company Collegium Pharmaceutical (NASDAQ:COLL) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 29.4% year on year to $188 million. The company’s full-year revenue guidance of $752.5 million at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $1.68 per share was 9.2% below analysts’ consensus estimates.

Luxury hotels and casino operator Wynn Resorts (NASDAQ:WYNN) fell short of the market’s revenue expectations in Q2 CY2025, with sales flat year on year at $1.74 billion. Its non-GAAP profit of $1.09 per share was 9% below analysts’ consensus estimates.

Energy drink company Monster Beverage (NASDAQ:MNST) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 11.1% year on year to $2.11 billion. Its non-GAAP profit of $0.52 per share was 8.8% above analysts’ consensus estimates.

Healthcare staffing company AMN Healthcare Services (NYSE:AMN) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 11.1% year on year to $658.2 million. On the other hand, next quarter’s revenue guidance of $617.5 million was less impressive, coming in 3.7% below analysts’ estimates. Its non-GAAP profit of $0.30 per share was 60.9% above analysts’ consensus estimates.

Hospitality company Hyatt Hotels (NYSE:H) announced better-than-expected revenue in Q2 CY2025, with sales up 6.2% year on year to $1.81 billion. Its non-GAAP profit of $0.68 per share was 1.8% above analysts’ consensus estimates.

Bedding manufacturer Somnigroup (NYSE:SGI) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 52.5% year on year to $1.88 billion. Its non-GAAP profit of $0.53 per share was 3.6% above analysts’ consensus estimates.