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.
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.
Business transformation services company Genpact (NYSE:G) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 7.4% year on year to $1.21 billion. On the other hand, next quarter’s revenue guidance of $1.22 billion was less impressive, coming in 2.3% below analysts’ estimates. Its non-GAAP profit of $0.84 per share was 5.8% above analysts’ consensus estimates.
"Too big to fail" is how we would describe the megacap stocks in this article today.
While they will likely stand the test of time, it’s not all sunshine and rainbows as their scale can limit their ability to find new sources of growth.
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.
Healthcare technology company GE HealthCare Technologies (NASDAQ:GEHC) reported Q1 CY2025 results beating Wall Street’s revenue expectations, with sales up 2.8% year on year to $4.78 billion. Its non-GAAP profit of $1.01 per share was 10.6% above analysts’ consensus estimates.
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.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
will be reporting earnings tomorrow before the bell. Here’s what investors should know.
Industrial equipment and engineered products manufacturer Albany (NYSE:AIN)
will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
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.
