Recent Articles from StockStory

Shares of digital lending platform LendingClub (NYSE:LC) jumped 3.4% in the morning session after AI-darling Nvidia reported quarterly results that surpassed analysts' expectations, signaling continued robust demand in the artificial intelligence space. 

Shares of buy-now-pay-later service Sezzle (NASDAQCM:SEZL) jumped 4.5% in the morning session after AI-darling Nvidia reported quarterly results that surpassed analysts' expectations, signaling continued robust demand in the artificial intelligence space. 

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia, eased lingering concerns about a potential bubble in the artificial intelligence sector. 

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector. 

Shares of voice AI technology company SoundHound AI (NASDAQ:SOUN) jumped 7.6% in the morning session after strong results from chipmaker Nvidia, eased lingering concerns about a potential bubble in the artificial intelligence sector. 

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector. 

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia, eased lingering concerns about a potential bubble in the artificial intelligence sector. 

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia, eased lingering concerns about a potential bubble in the artificial intelligence sector. 

Shares of retail behemoth Walmart (NYSE:WMT) jumped 6.3% in the morning session after the company reported better-than-expected third-quarter results and raised its full-year financial outlook. 

Shares of personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) fell 22.9% in the morning session after the company reported disappointing third-quarter results and provided a weak full-year profit forecast. 

Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 2.1% in the morning session after the company reported third-quarter results that beat Wall Street expectations and provided a strong revenue forecast for the upcoming quarter, amid "off the charts" demand for its next-generation GPUs. 

Shares of landscaping service company BrightView (NYSE:BV) fell 2.4% in the morning session after the company reported disappointing third-quarter earnings results, missing Wall Street's expectations for both revenue and profit and providing a weak forecast for the upcoming year. 

Shares of infrastructure construction company MasTec (NYSE:MTZ) jumped 3.3% in the morning session after an analyst at Goldman Sachs reiterated a 'Buy' rating on the stock and increased its price target. 

Shares of power resiliency solutions provider American Superconductor (NASDAQ:AMSC) jumped 3% in the morning session after an analyst at Clear Street upgraded the stock to 'Buy' from 'Hold' and set a new price target. 

Shares of footwear retailer Shoe Carnival (NASDAQ:SCVL) fell 6% in the morning session after the company reported a decline in its third-quarter profit and sales. 

Shares of vocational education Universal Technical Institute (NYSE:UTI) fell 14.3% in the morning session after the company issued a weak financial outlook for 2026, with its earnings guidance falling significantly short of analyst expectations. 

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 62.5% year on year to $57.01 billion. On top of that, next quarter’s revenue guidance ($65 billion at the midpoint) was surprisingly good and 4.2% above what analysts were expecting. Its non-GAAP profit of $1.30 per share was 3.8% above analysts’ consensus estimates.

Check out the companies making headlines yesterday:

Global music entertainment company Warner Music Group (NASDAQ:WMG) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 14.6% year on year to $1.87 billion. Its GAAP profit of $0.21 per share was 38.7% below analysts’ consensus estimates.

Civil infrastructure company Construction Partners (NASDAQ:ROAD) met Wall Streets revenue expectations in Q3 CY2025, with sales up 67.2% year on year to $899.8 million. The company’s full-year revenue guidance of $3.45 billion at the midpoint came in 0.8% above analysts’ estimates. Its GAAP profit of $1.02 per share was 7.7% below analysts’ consensus estimates.

Retail behemoth Walmart (NYSE:WMT) announced better-than-expected revenue in Q3 CY2025, with sales up 5.8% year on year to $179.5 billion. Its non-GAAP profit of $0.62 per share was 3.2% above analysts’ consensus estimates.

Personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) missed Wall Street’s revenue expectations in Q3 CY2025, with sales flat year on year at $1.59 billion. Its GAAP profit of $0.37 per share was 5.9% below analysts’ consensus estimates.

Global professional services company Jacobs Solutions (NYSE:J) announced better-than-expected revenue in Q3 CY2025, with sales up 6.6% year on year to $3.15 billion. Its non-GAAP profit of $1.75 per share was 4.2% above analysts’ consensus estimates.

Government services provider Maximus (NYSE:MMS) missed Wall Street’s revenue expectations in Q3 CY2025, with sales flat year on year at $1.32 billion. The company’s full-year revenue guidance of $5.33 billion at the midpoint came in 4.5% below analysts’ estimates. Its non-GAAP profit of $1.62 per share was 3% below analysts’ consensus estimates.

Footwear retailer Shoe Carnival (NASDAQ:SCVL) announced better-than-expected revenue in Q3 CY2025, but sales fell by 3.2% year on year to $297.2 million. The company expects the full year’s revenue to be around $1.14 billion, close to analysts’ estimates. Its GAAP profit of $0.53 per share was in line with analysts’ consensus estimates.

Electrical safety company Atkore (NYSE:ATKR) reported Q3 CY2025 results topping the market’s revenue expectations, but sales fell by 4.6% year on year to $752 million. Its non-GAAP profit of $0.69 per share was 45.1% below analysts’ consensus estimates.

Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 3.3% gain has fallen behind the S&P 500’s 11.8% rise.

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.

Applied Materials’ third quarter results were shaped by steady demand for semiconductor manufacturing equipment, despite a year-over-year sales decline. Management pointed to ongoing trade restrictions and a less favorable market mix as factors that tempered growth, especially given reduced access to the Chinese market. CEO Gary Dickerson emphasized that, while the company’s accessible market shrank due to these restrictions, Applied Materials maintained share where it could compete. He attributed continued strength to leadership in process technologies for DRAM and advanced foundry logic, stating, “We have very high share…across multiple technology nodes.”

Disney’s third quarter saw flat year-over-year revenue and a significant market selloff after results missed Wall Street’s sales expectations. Management emphasized that growth in streaming operating income, improved margins, and robust performance in the Experiences segment were key positives. CEO Bob Iger highlighted the global appeal of recent film releases and the turnaround in direct-to-consumer profitability, noting, “Our DTC business was running a $4 billion operating loss just three years ago.” However, a cautious tone emerged around domestic park attendance and the evolving competitive landscape in media.

MarineMax’s third quarter results reflected the challenges facing the recreational boating sector, as cautious consumer behavior and elevated inventory levels weighed on demand. Management pointed to persistent inflation and high interest rates as factors causing many buyers to delay boat purchases. CEO Brett McGill highlighted that the company’s diversified revenue streams, including finance, insurance, service, and marina operations, helped offset margin pressure from the core retail business. He cited the success of cross-selling initiatives, noting, “A 35-meter Yacht sale at the recent Fort Lauderdale International Boat Show resulted from touchpoints across all of these businesses.”

OneWater’s third quarter results were met with a negative market reaction, as revenue growth outpaced Wall Street expectations but profitability metrics fell short. Management attributed the higher sales to a rebound in both new and pre-owned boat demand, especially in markets recovering from weather disruptions last year. Pre-owned activity was particularly strong, supported by improved trade-in dynamics and disciplined inventory management. The company also noted that the exit from certain brands created short-term margin headwinds, but said it provided a cleaner operational focus for the business. CEO Anthony Aisquith emphasized, “Our focus on serving customers drove another year of positive same-store sales growth and continued market share gains.”

Home improvement retailer Lowe’s (NYSE:LOW) met Wall Streets revenue expectations in Q3 CY2025, with sales up 3.2% year on year to $20.81 billion. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $86 billion at the midpoint. Its non-GAAP profit of $3.06 per share was 3.6% above analysts’ consensus estimates.

Kitchenware and home goods retailer Williams-Sonoma (NYSE:WSM) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 4.6% year on year to $1.88 billion. Its GAAP profit of $1.96 per share was 4.7% above analysts’ consensus estimates.

Website building platform Wix (NASDAQ:WIX) reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 13.6% year on year to $505.2 million. The company expects next quarter’s revenue to be around $526 million, close to analysts’ estimates. Its non-GAAP profit of $1.68 per share was 12.6% above analysts’ consensus estimates.

Spectrum Brands’ third quarter performance in 2025 was defined by a sharper-than-expected revenue decline, yet the market responded positively due to robust cost-reduction efforts and a substantial non-GAAP earnings beat. Management attributed the sales softness primarily to supply chain disruptions from paused shipments out of China and ongoing category weakness in Global Pet Care and Home and Personal Care. CEO David Maura emphasized that, despite these challenges, the company successfully offset tariff and inflationary pressures through vendor concessions, internal cost cuts, and targeted pricing actions. As Maura noted, “We have offset substantially all of this [tariff] exposure through a combination of vendor concessions, painful internal cost reductions, supply base reconfiguration and diversification, and lastly, pricing actions.”

Stratasys’ third quarter results met Wall Street’s revenue expectations, but the market reacted negatively as year-over-year sales declined and margin pressures persisted. Management attributed the top-line softness to continued macro-driven caution in capital equipment spending, particularly in industrial and manufacturing sectors. CEO Yoav Zeif emphasized that cost discipline and operational efficiencies were key in generating positive operating cash flow and non-GAAP earnings. He pointed to “strong execution by our team to leverage notably improved lower adjusted operating expenses by 440 basis points year over year,” even as gross margin remained under pressure from higher tariffs and unfavorable product mix.

Cybersecurity platform provider Palo Alto Networks (NASDAQ:PANW) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 15.7% year on year to $2.47 billion. The company expects next quarter’s revenue to be around $2.58 billion, close to analysts’ estimates. Its non-GAAP profit of $0.93 per share was 4.4% above analysts’ consensus estimates.

General merchandise retailer Target (NYSE:TGT) met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 1.6% year on year to $25.27 billion. Its non-GAAP profit of $1.78 per share was 3.6% above analysts’ consensus estimates.

Off-price retail company TJX (NYSE:TJX) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 7.5% year on year to $15.12 billion. On the other hand, next quarter’s revenue guidance of $16.76 billion was less impressive, coming in 3.2% below analysts’ estimates. Its GAAP profit of $1.28 per share was 5% above analysts’ consensus estimates.

Sally Beauty’s third quarter saw positive market reception, with management attributing the company’s performance to strength in the color category, digital marketplace expansion, and ongoing customer engagement initiatives. CEO Denise Paulonis highlighted the importance of color products, noting 7% growth in color during the quarter, as well as significant momentum in the company’s “Licensed Colors on Demand” consultation service. Management also pointed to the effectiveness of digital channels and marketplace partnerships, such as with Uber Eats and DoorDash, in driving e-commerce sales and customer acquisition.

Telecommunications company Dycom (NYSE:DY) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 14.1% year on year to $1.45 billion. The company expects next quarter’s revenue to be around $1.3 billion, close to analysts’ estimates. Its non-GAAP profit of $3.63 per share was 13% above analysts’ consensus estimates.

Edgewell Personal Care’s third quarter results reflected solid top-line momentum, with organic net sales growth driven by international markets and modest recovery in core North America segments. Management highlighted that improved market share in key brands and categories, together with ongoing innovation and supply chain productivity efforts, helped offset weaker performance in sun care and tariff-related cost pressures. CEO Rod Little acknowledged the external and internal challenges faced during the quarter, stating, “We faced significant external pressures: tariffs, foreign exchange volatility, geopolitical tensions, and consumer uncertainty that impacted our financial performance and stressed our global supply chain.”

Vocational education Universal Technical Institute (NYSE:UTI) announced better-than-expected revenue in Q3 CY2025, with sales up 13.3% year on year to $222.4 million. The company’s full-year revenue guidance of $910 million at the midpoint came in 0.9% above analysts’ estimates. Its GAAP profit of $0.34 per share was 32.5% above analysts’ consensus estimates.

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.

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.

Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices. But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.

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.

Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.

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.

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.

The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.

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.

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.

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.

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.

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

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.

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.

Over the past six months, Methode Electronics’s shares (currently trading at $6.76) have posted a disappointing 10.2% loss, well below the S&P 500’s 11.3% gain. This might have investors contemplating their next move.

Although Globe Life (currently trading at $128.88 per share) has gained 5.5% over the last six months, it has trailed the S&P 500’s 11.3% return during that period. This was partly due to its softer quarterly results and might have investors contemplating their next move.

General Dynamics’s 22% return over the past six months has outpaced the S&P 500 by 10.6%, and its stock price has climbed to $343.43 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Since November 2020, the S&P 500 has delivered a total return of 85.8%. But one standout stock has more than doubled the market - over the past five years, Agilysys has surged 204% to $123.52 per share. Its momentum hasn’t stopped as it’s also gained 21.9% in the last six months thanks to its solid quarterly results, beating the S&P by 10.5%.

Over the past six months, Asure Software’s shares (currently trading at $7.99) have posted a disappointing 18% loss, well below the S&P 500’s 11.3% gain. This may have investors wondering how to approach the situation.

Domo has had an impressive run over the past six months as its shares have beaten the S&P 500 by 19.7%. The stock now trades at $11.20, marking a 31% gain. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Over the past six months, The Pennant Group’s shares (currently trading at $26.51) have posted a disappointing 9.9% loss, well below the S&P 500’s 11.3% gain. This may have investors wondering how to approach the situation.

Dayforce’s 17.4% return over the past six months has outpaced the S&P 500 by 6%, and its stock price has climbed to $69.05 per share. This run-up might have investors contemplating their next move.

Over the past six months, Hologic has been a great trade, beating the S&P 500 by 20%. Its stock price has climbed to $74.17, representing a healthy 31.3% increase. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Over the past six months, First Merchants’s stock price fell to $35.34. Shareholders have lost 9.8% of their capital, which is disappointing considering the S&P 500 has climbed by 11.3%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.

Zoetis’s stock price has taken a beating over the past six months, shedding 28.6% of its value and falling to a new 52-week low of $116.88 per share. This was partly due to its softer quarterly results and might have investors contemplating their next move.

Granite Construction currently trades at $102.54 and has been a dream stock for shareholders. It’s returned 326% since November 2020, blowing past the S&P 500’s 85.8% gain. The company has also beaten the index over the past six months as its stock price is up 17.9%.