Recent Articles from StockStory

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

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.

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.

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.

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.

Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. But they’re also double-edged swords as they often lag in booming conditions, and this pattern has persisted recently. Over the past six months, the industry has recorded a loss of 4.4%, a far cry from the S&P 500’s 6.2% ascent.

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.

Growth is a hallmark of all great companies, but the laws of gravity eventually take hold. Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.

Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.

Telecommunications company Dycom (NYSE:DY) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 14.5% year on year to $1.38 billion. Next quarter’s revenue guidance of $1.41 billion underwhelmed, coming in 4.1% below analysts’ estimates. Its GAAP profit of $3.33 per share was 14.2% above analysts’ consensus estimates.

Beauty products company Coty (NYSE:COTY) reported Q2 CY2025 results exceeding the market’s revenue expectations, but sales fell by 8.1% year on year to $1.25 billion. Its non-GAAP loss of $0.05 per share was significantly below analysts’ consensus estimates.

Off-price retail company TJX (NYSE:TJX) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 6.9% year on year to $14.4 billion. On the other hand, next quarter’s revenue guidance of $14.41 billion was less impressive, coming in 2.1% below analysts’ estimates. Its GAAP profit of $1.10 per share was 8.6% above analysts’ consensus estimates.

Manufacturer of analog chips Analog Devices (NASDAQ:ADI) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 24.6% year on year to $2.88 billion. On top of that, next quarter’s revenue guidance ($3 billion at the midpoint) was surprisingly good and 6.4% above what analysts were expecting. Its non-GAAP profit of $2.05 per share was 5.1% above analysts’ consensus estimates.

Applied Materials delivered a better-than-expected second quarter, but the market responded negatively amid growing concerns about future demand visibility—particularly in China. Management attributed quarterly strength to robust demand for semiconductor systems and services, with CEO Gary Dickerson highlighting "record performance" driven by investments in advanced chip manufacturing and ongoing customer engagement. However, management was clear that the positive results were partly offset by uneven demand patterns and mounting external uncertainty, especially around Chinese capacity digestion and the impact of export license restrictions.

Advance Auto Parts’ Q2 results were met with a strongly negative market reaction, as management attributed the performance to continued margin pressures and a challenging operating environment. CEO Shane O’Kelly noted that while the Pro business showed positive comparable sales growth and DIY sales stabilized, the company is still in the early stages of its turnaround. O’Kelly highlighted, “We are closely monitoring consumer behavior and the potential for recalibration in purchasing habits, especially within our DIY business.” Management acknowledged ongoing operational challenges, including the impact of tariffs and higher costs, contributing to a cautious outlook for the remainder of the year.

Tapestry’s second quarter results were met with a significant negative market reaction, reflecting investor concerns despite revenue that surpassed Wall Street expectations. Management attributed the quarter’s top-line growth to strong momentum at its flagship Coach brand and successful customer acquisition among Gen Z and millennials, particularly in North America and China. However, the quarter’s bottom line was challenged by a substantial non-cash impairment charge related to Kate Spade, as well as higher operating expenses and new tariff impacts. CEO Joanne Crevoiserat acknowledged these headwinds, emphasizing, “We are clear-eyed about the environment… and even with tariffs, we’re continuing to expand our operating margin this year.”

Home improvement retailer Lowe’s (NYSE:LOW) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 1.6% year on year to $23.96 billion. The company’s full-year revenue guidance of $85 billion at the midpoint came in 0.7% above analysts’ estimates. Its non-GAAP profit of $4.33 per share was 2.1% above analysts’ consensus estimates.

Deere’s second quarter saw a disappointing market reaction as revenue missed Wall Street’s expectations, driven by a 9% year-over-year sales decline. Management attributed underperformance to challenging end market conditions, elevated tariffs, and persistent caution among customers, especially in North America. CFO Josh Beal described the period as one marked by “uncertainty in the industry fundamentals and evolving global trade environment,” highlighting that elevated inventory levels and high interest rates continued to weigh on large equipment demand. Despite these headwinds, Deere noted improved retail activity in some European and North American segments, but overall, the company faced cost pressures and negative price realization as it worked to clear used equipment.

General merchandise retailer Target (NYSE:TGT) announced better-than-expected revenue in Q2 CY2025, but sales were flat year on year at $25.21 billion. Its non-GAAP profit of $2.05 per share was 0.7% above analysts’ consensus estimates.

Beauty products company Estée Lauder (NYSE:EL) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 12% year on year to $3.41 billion. Its non-GAAP profit of $0.09 per share was in line with analysts’ consensus estimates.

Free cash flow is one of the most reliable indicators of financial durability. These businesses not only generate cash but reinvest intelligently to sustain momentum.

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.

Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.

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.

Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.

Restaurants increase convenience and give many people a place to unwind. But the side dish is that they’re quite difficult to operate because high inventory and labor costs generally lead to thin margins at the store level. This leaves little room for error if demand dries up, and it seems like the market has some reservations as the industry has tumbled by 11.8% over the past six months. This drop is a far cry from the S&P 500’s 6.4% ascent.

Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

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.

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.

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.

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.

"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.

Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.

Consumer discretionary businesses are levered to the highs and lows of economic cycles. Over the past six months, it seems like demand trends may be working against their favor as the industry’s returns were flat while the S&P 500 was up 6.4%.

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.

Over the past six months, Icahn Enterprises’s stock price fell to $8.42. Shareholders have lost 19.2% of their capital, which is disappointing considering the S&P 500 has climbed by 6.4%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Over the last six months, Intuitive Surgical’s shares have sunk to $480, producing a disappointing 18.9% loss - a stark contrast to the S&P 500’s 6.4% gain. This may have investors wondering how to approach the situation.

Shareholders of NN would probably like to forget the past six months even happened. The stock dropped 20.4% and now trades at $2.30. This might have investors contemplating their next move.

What a brutal six months it’s been for QuinStreet. The stock has dropped 24.8% and now trades at $15.13, rattling many shareholders. This may have investors wondering how to approach the situation.

Over the past six months, Globe Life has been a great trade, beating the S&P 500 by 7.1%. Its stock price has climbed to $139.10, representing a healthy 13.5% increase. This run-up might have investors contemplating their next move.

McDonald's currently trades at $313.09 per share and has shown little upside over the past six months, posting a middling return of 2.7%.

Newmark currently trades at $17.28 and has been a dream stock for shareholders. It’s returned 313% since August 2020, blowing past the S&P 500’s 88% gain. The company has also beaten the index over the past six months as its stock price is up 22% thanks to its solid quarterly results.

Lincoln Electric has had an impressive run over the past six months as its shares have beaten the S&P 500 by 9.2%. The stock now trades at $239.43, marking a 15.5% gain. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

PubMatic has gotten torched over the last six months - since February 2025, its stock price has dropped 43.6% to $8.19 per share. This may have investors wondering how to approach the situation.

What a brutal six months it’s been for Azenta. The stock has dropped 33.5% and now trades at $29.77, rattling many shareholders. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Over the last six months, Paylocity’s shares have sunk to $181.27, producing a disappointing 11.5% loss - a stark contrast to the S&P 500’s 6.4% gain. This might have investors contemplating their next move.

Shareholders of Genesco would probably like to forget the past six months even happened. The stock dropped 32% and now trades at $25.62. This might have investors contemplating their next move.

Over the past six months, Navient’s stock price fell to $12.80. Shareholders have lost 8.7% of their capital, which is disappointing considering the S&P 500 has climbed by 6.4%. This may have investors wondering how to approach the situation.

What a time it’s been for Foot Locker. In the past six months alone, the company’s stock price has increased by a massive 40.4%, reaching $25.55 per share. This performance may have investors wondering how to approach the situation.

German American Bancorp currently trades at $40.13 per share and has shown little upside over the past six months, posting a middling return of 2.2%.

Wintrust Financial currently trades at $128.83 per share and has shown little upside over the past six months, posting a middling return of 4.1%.

Over the last six months, First Citizens BancShares’s shares have sunk to $1,929, producing a disappointing 5.9% loss - a stark contrast to the S&P 500’s 6.4% gain. This might have investors contemplating their next move.

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the gaming solutions stocks, including Churchill Downs (NASDAQ:CHDN) and its peers.

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Champion Homes (NYSE:SKY) and its peers.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how testing & diagnostics services stocks fared in Q2, starting with NeoGenomics (NASDAQ:NEO).

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Arrow Electronics (NYSE:ARW) and the rest of the engineered components and systems stocks fared in Q2.

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the wireless, cable and satellite industry, including Cable One (NYSE:CABO) and its peers.

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including Frontdoor (NASDAQ:FTDR) and its peers.

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the home builders industry, including Installed Building Products (NYSE:IBP) and its peers.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Blue Bird (NASDAQ:BLBD) and the best and worst performers in the heavy transportation equipment industry.

Looking back on research tools & consumables stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Sotera Health Company (NASDAQ:SHC) and its peers.

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the business process outsourcing & consulting industry, including TaskUs (NASDAQ:TASK) and its peers.

Let’s dig into the relative performance of Telephone and Data Systems (NYSE:TDS) and its peers as we unravel the now-completed Q2 terrestrial telecommunication services earnings season.

Looking back on regional banks stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Regions Financial (NYSE:RF) and its peers.

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Boeing (NYSE:BA) and its peers.

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the waste management stocks, including Montrose (NYSE:MEG) and its peers.

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the custody bank stocks, including Voya Financial (NYSE:VOYA) and its peers.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how design software stocks fared in Q2, starting with Adobe (NASDAQ:ADBE).

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at health insurance providers stocks, starting with Humana (NYSE:HUM).

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at WaFd Bank (NASDAQ:WAFD) and the best and worst performers in the thrifts & mortgage finance industry.

As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the toys and electronics industry, including Bark (NYSE:BARK) and its peers.

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the medical devices & supplies - specialty industry, including Bausch + Lomb (NYSE:BLCO) and its peers.

Let’s dig into the relative performance of Solventum (NYSE:SOLV) and its peers as we unravel the now-completed Q2 surgical equipment & consumables - diversified earnings season.