The biggest names in tech, e-commerce, and digital transformation are in the Nasdaq 100 (^NDX), but only a few are leading the pack.
Some companies in this index are proving their resilience and expanding their competitive advantages.
Should investors take stock in preferred stock? Motley Fool analysts Matt Argersinger and Anthony Schiavone talk with Infrastructure Capital Advisors CEO Jay Hatfield about preferred stocks and why income investors should look beyond index funds.
As Applied Materials has outperformed the broader market over the past year, Wall Street analysts maintain a moderately optimistic outlook about the stock’s prospects.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
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.
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".
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.
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.
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.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
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.
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.
Large-cap stocks usually command their industries because they have the scale to drive market trends.
The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
The Nasdaq 100 (^NDX) is known for housing some of the most innovative and fastest-growing companies in the market.
But not every stock in the index is a winner - some are struggling with slowing growth, increasing competition, or unsustainable valuations.
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Their momentum is also rising as lower interest rates have incentivized higher capital spending.
As a result, the industry has posted a 30.9% gain over the past six months, beating the S&P 500 by 9.7 percentage points.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Business services providers use their specialized expertise to help enterprises streamline operations and cut costs. But increasing competition from AI-driven upstarts has tempered enthusiasm,
limiting the industry’s gains to 19.5% over the past six months.
This return lagged the S&P 500’s 21.3% climb.
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.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
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.
While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing.
Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
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.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
JPMorgan CEO Jamie Dimon praised Nvidia as an "unbelievable" company and called AI a true productivity revolution, but warned investors that some AI stocks may now be overpriced.
Financial firms serve as the backbone of the economy, providing essential services from lending and investment management to risk management and payment processing. But worries about economic uncertainty and potential market volatility have kept sentiment in check,
and over the past six months, the industry's 13.2% return has trailed the S&P 500 by 8 percentage points.
Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But uncertainty about fiscal and monetary policy has tempered enthusiasm,
limiting the industry's gains to 13.2% over the past six months.
This return lagged the S&P 500's 21.3% climb.
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.
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.
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.
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.
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.
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.
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that make re-ratings harder.
Unfortunately, the rich prices have held them back over the past six months as the industry’s gain of 10.3% has fallen short of the S&P 500’s 21.3% rise.
Advanced Micro Devices recently achieved an all-time high within an impulsive sequence that remains incomplete. The rally from the April 2025 low has thus far unfolded in only three waves.
Over the past six months, IDEX’s shares (currently trading at $168.27) have posted a disappointing 6.3% loss, well below the S&P 500’s 21.3% gain. This may have investors wondering how to approach the situation.
Shareholders of Erie Indemnity would probably like to forget the past six months even happened. The stock dropped 20.2% and now trades at $288.16. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
TriCo Bancshares trades at $45.47 per share and has stayed right on track with the overall market, gaining 16.3% over the last six months. At the same time, the S&P 500 has returned 21.3%.
Stratasys has been treading water for the past six months, recording a small return of 1% while holding steady at $9.80. The stock also fell short of the S&P 500’s 21.3% gain during that period.
Cardinal Health currently trades at $196.52 and has been a dream stock for shareholders. It’s returned 273% since November 2020, nearly tripling the S&P 500’s 93.5% gain. The company has also beaten the index over the past six months as its stock price is up 29.6% thanks to its solid quarterly results.
Although PNC Financial Services Group (currently trading at $183.70 per share) has gained 12.3% over the last six months, it has trailed the S&P 500’s 21.3% return during that period. This may have investors wondering how to approach the situation.
Amphenol has been on fire lately. In the past six months alone, the company’s stock price has rocketed 74.7%, reaching $139.23 per share. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Over the last six months, Quanex’s shares have sunk to $13.64, producing a disappointing 18.6% loss - a stark contrast to the S&P 500’s 21.3% gain. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Although Merck (currently trading at $84.57 per share) has gained 7% over the last six months, it has trailed the S&P 500’s 21.3% return during that period. This may have investors wondering how to approach the situation.
