Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
"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.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
Banks serve as the backbone of the economy, facilitating lending, deposits, and financial services that keep businesses and consumers moving forward. But worries about an economic slowdown and potential credit deterioration have kept sentiment in check,
and over the past six months, the banking industry’s 8.5% return has trailed the S&P 500 by 3.1 percentage points.
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 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.
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.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
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 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 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.
Shayne Coplan, founder of decentralized prediction platform Polymarket, said Wednesday, September 3, that the Commodity Futures Trading Commission has approved the platform's operation in the U.S.
Moelis trades at $70.27 per share and has stayed right on track with the overall market, gaining 8.7% over the last six months. At the same time, the S&P 500 has returned 11.6%.
Alignment Healthcare currently trades at $16.32 per share and has shown little upside over the past six months, posting a middling return of 3.6%. The stock also fell short of the S&P 500’s 11.6% gain during that period.
Over the last six months, Western Union’s shares have sunk to $8.73, producing a disappointing 18% loss - a stark contrast to the S&P 500’s 11.6% gain. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
Over the past six months, Ally Financial has been a great trade, beating the S&P 500 by 5.7%. Its stock price has climbed to $40.87, representing a healthy 17.3% increase. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Ryder currently trades at $186.05 and has been a dream stock for shareholders. It’s returned 356% since September 2020, blowing past the S&P 500’s 87.9% gain. The company has also beaten the index over the past six months as its stock price is up 21.3% thanks to its solid quarterly results.
Genuine Parts trades at $136.27 and has moved in lockstep with the market. Its shares have returned 10.9% over the last six months while the S&P 500 has gained 11.6%.
The Real Brokerage trades at $5.30 per share and has stayed right on track with the overall market, gaining 8.6% over the last six months. At the same time, the S&P 500 has returned 11.6%.
What a fantastic six months it’s been for Nextracker. Shares of the company have skyrocketed 54.3%, hitting $66.50. This run-up might have investors contemplating their next move.
The Trade Desk’s stock price has taken a beating over the past six months, shedding 20.7% of its value and falling to $53.59 per share. This may have investors wondering how to approach the situation.
Nature's Sunshine has had an impressive run over the past six months as its shares have beaten the S&P 500 by 8.4%. The stock now trades at $17.22, marking a 20% gain. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Western Digital has been on fire lately. In the past six months alone, the company’s stock price has rocketed 93.3%, setting a new 52-week high of $86.27 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Over the past six months, Avery Dennison’s stock price fell to $166.80. Shareholders have lost 8% of their capital, which is disappointing considering the S&P 500 has climbed by 11.6%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Over the past six months, Laureate Education has been a great trade, beating the S&P 500 by 27.9%. Its stock price has climbed to $27.95, representing a healthy 39.5% increase. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Since March 2025, Dine Brands has been in a holding pattern, floating around $23.38. The stock also fell short of the S&P 500’s 11.6% gain during that period.
SunOpta trades at $6.15 and has moved in lockstep with the market. Its shares have returned 7.5% over the last six months while the S&P 500 has gained 11.6%.
ServiceNow has been treading water for the past six months, recording a small return of 1% while holding steady at $915. The stock also fell short of the S&P 500’s 11.6% gain during that period.
Over the past six months, Choice Hotels’s shares (currently trading at $117.17) have posted a disappointing 18.9% loss, well below the S&P 500’s 11.6% gain. This may have investors wondering how to approach the situation.
Over the past six months, Ruger’s shares (currently trading at $34.27) have posted a disappointing 13.1% loss, well below the S&P 500’s 11.6% gain. This might have investors contemplating their next move.
WEX trades at $167.17 per share and has stayed right on track with the overall market, gaining 8.1% over the last six months. At the same time, the S&P 500 has returned 11.6%.
Over the past six months, Remitly’s stock price fell to $19.48. Shareholders have lost 15.3% of their capital, which is disappointing considering the S&P 500 has climbed by 11.6%. This may have investors wondering how to approach the situation.
American Airlines has been treading water for the past six months, recording a small return of 0.9% while holding steady at $13.47. The stock also fell short of the S&P 500’s 11.6% gain during that period.
Since March 2025, Brinker International has been in a holding pattern, posting a small return of 4.3% while floating around $159.15. The stock also fell short of the S&P 500’s 11.6% gain during that period.
The past six months have been a windfall for Carnival’s shareholders. The company’s stock price has jumped 43.3%, hitting $31.40 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Scholastic has had an impressive run over the past six months as its shares have beaten the S&P 500 by 7.3%. The stock now trades at $25.05, marking a 18.9% gain. This run-up might have investors contemplating their next move.
What a brutal six months it’s been for Charter. The stock has dropped 29% and now trades at $261.50, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
What a time it’s been for Amphenol. In the past six months alone, the company’s stock price has increased by a massive 76%, reaching $110.99 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Sinclair currently trades at $14.15 per share and has shown little upside over the past six months, posting a middling return of 4.4%. The stock also fell short of the S&P 500’s 11.6% gain during that period.
Holiday shoppers plan to spend $1,552 on gifts, travel, and entertainment, 5% less than last year, with Gen Z cutting spending by 23%. PwC survey shows price-conscious mindset and impact of tariffs on consumer behavior.
