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.
Rock-bottom prices don't always mean rock-bottom businesses.
The stocks we're examining today have all touched their 52-week lows, creating a classic investor's dilemma: bargain opportunity or value trap?
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.
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. Despite the tailwinds, their demand largely hinges on consumer spending habits, which investors believe are weakening.
As a result, the industry has pulled back by 27.8% over the past six months. This drawdown is a far cry from the S&P 500’s 6.2% ascent.
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.
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.
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.
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.
Okta’s stock price has taken a beating over the past six months, shedding 22.1% of its value and falling to $71.14 per share. This might have investors contemplating their next move.
Over the past six months, Cadence Design Systems’s shares (currently trading at $290.70) have posted a disappointing 15.8% loss, well below the S&P 500’s 6.2% gain. This may have investors wondering how to approach the situation.
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.
Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes.
These doubts have certainly contributed to banking stocks’ recent underperformance - over the past six months, the industry’s 3.6% gain has fallen behind the S&P 500’s 6.2% rise.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But their prominence also brings high exposure to the ups and downs of economic cycles.
Luckily, the tide is turning in their favor as the industry’s 19.2% return over the past six months has topped the S&P 500 by 13 percentage points.
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.
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Since August 2025, Halozyme Therapeutics has been in a holding pattern, posting a small loss of 2.1% while floating around $70.71. The stock also fell short of the S&P 500’s 6.2% gain during that period.
AeroVironment has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 8.6% to $261.95 per share while the index has gained 6.2%.
Over the past six months, Wabash’s shares (currently trading at $10.60) have posted a disappointing 5.1% loss, well below the S&P 500’s 6.2% gain. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
During his 2026 State of the Union address, Donald Trump defended "Operation Midnight Hammer," warned of Iran's growing missile and nuclear threats, questioned Tehran's pledge not to build a bomb — drawing applause from Democrats including Elizabeth Warren — even as Iranian Foreign Minister Abbas Araghchi reiterated that Iran will never develop a nuclear weapon ahead of renewed Geneva talks.
Taylor Morrison Home has been treading water for the past six months, recording a small loss of 1.6% while holding steady at $66.89. The stock also fell short of the S&P 500’s 6.2% gain during that period.
Over the last six months, Mastercard’s shares have sunk to $498.84, producing a disappointing 15.9% loss - a stark contrast to the S&P 500’s 6.2% gain. This might have investors contemplating their next move.
Sally Beauty has had an impressive run over the past six months as its shares have beaten the S&P 500 by 14.6%. The stock now trades at $16.32, marking a 20.8% gain. This run-up might have investors contemplating their next move.
Shareholders of Agilysys would probably like to forget the past six months even happened. The stock dropped 33.6% and now trades at $71.97. This might have investors contemplating their next move.
Over the past six months, WSFS Financial has been a great trade, beating the S&P 500 by 8%. Its stock price has climbed to $65.54, representing a healthy 14.2% increase. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Procter & Gamble has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 5.9% to $165.39 per share while the index has gained 6.2%.
Over the last six months, Genpact’s shares have sunk to $37.95, producing a disappointing 16.5% loss - a stark contrast to the S&P 500’s 6.2% gain. This may have investors wondering how to approach the situation.
What a fantastic six months it’s been for Moderna. Shares of the company have skyrocketed 99.8%, hitting $50.65. 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, Piper Sandler’s shares (currently trading at $310.18) have posted a disappointing 7.3% loss, well below the S&P 500’s 6.2% gain. This may have investors wondering how to approach the situation.
Meta is still growing fast and producing significant cash, but investors seem spooked by the social media company's capital-intensive AI spending spree.
Strong guidance and surging demand for high-protein, healthy meals lift Cava — but margin pressure and value-conscious consumers keep the battle tight.
Investors will also focus on Nvidia’s earnings, amid closer scrutiny of large-cap technology valuations and rising concerns over hyperscalers’ capital spending on AI.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Central Garden & Pet (NASDAQ:CENT) and its peers.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the inspection instruments industry, including Keysight (NYSE:KEYS) and its peers.
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 Q4. Today, we are looking at gig economy stocks, starting with DoorDash (NASDAQ:DASH).
Looking back on life insurance stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Corebridge Financial (NYSE:CRBG) and its peers.
In his 2026 State of the Union address, Donald Trump touted border security gains, GDP growth, record stock highs and an $18 trillion investment claim while defending tariffs after a U.S. Supreme Court setback and clashing with Democrats over insider trading and economic performance.
