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.
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.
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.
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.
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.
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.
"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.
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.
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 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.
Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities.
However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
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.
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.
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.
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.
Consumer staples stocks are solid insurance policies in frothy markets ripe for corrections. The flip side is that they frequently fall behind growth industries when times are good,
and this perception became a reality over the past six months as the sector was down 2.2% while the S&P 500 was up 16.5%.
The Nasdaq 100 (^NDX) is home to some of the biggest success stories in tech and growth investing.
However, certain stocks in the index face challenges like profitability concerns, rising costs, or shifts in market trends.
"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.
Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. The flip side is that they frequently fall behind growth industries when times are good,
and this perception became a reality over the past six months as the sector was down 2.2% while the S&P 500 was up 16.5%.
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.
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.
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Datadog’s 33.3% return over the past six months has outpaced the S&P 500 by 16.8%, and its stock price has climbed to $138.60 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Regal Rexnord trades at $141.07 per share and has stayed right on track with the overall market, gaining 19.1% over the last six months. At the same time, the S&P 500 has returned 16.5%.
Over the last six months, Unum Group’s shares have sunk to $75.90, producing a disappointing 7% loss - a stark contrast to the S&P 500’s 16.5% gain. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Semrush’s stock price has taken a beating over the past six months, shedding 24.9% of its value and falling to $7.44 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Over the past six months, Primerica’s stock price fell to $269.85. Shareholders have lost 7.2% of their capital, which is disappointing considering the S&P 500 has climbed by 16.5%. This might have investors contemplating their next move.
The past six months have been a windfall for Hims & Hers Health’s shareholders. The company’s stock price has jumped 55.7%, hitting $54 per share. This run-up might have investors contemplating their next move.
Compass Diversified has gotten torched over the last six months - since March 2025, its stock price has dropped 64.4% to $7.00 per share. This may have investors wondering how to approach the situation.
Corcept trades at $69.52 per share and has stayed right on track with the overall market, gaining 20.1% over the last six months. At the same time, the S&P 500 has returned 16.5%.
Gilead Sciences has been treading water for the past six months, holding steady at $112.78. The stock also fell short of the S&P 500’s 16.5% gain during that period.
Over the past six months, EverQuote’s shares (currently trading at $23.80) have posted a disappointing 15.2% loss, well below the S&P 500’s 16.5% gain. This might have investors contemplating their next move.
Construction Partners has been on fire lately. In the past six months alone, the company’s stock price has rocketed 71.2%, reaching $126.32 per share. This run-up might have investors contemplating their next move.
Supernus Pharmaceuticals’s 36.8% return over the past six months has outpaced the S&P 500 by 20.3%, and its stock price has climbed to $43.99 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Charles Schwab trades at $92.25 and has moved in lockstep with the market. Its shares have returned 18.6% over the last six months while the S&P 500 has gained 16.5%.
Over the last six months, Knight-Swift Transportation’s shares have sunk to $41.60, producing a disappointing 11.5% loss - a stark contrast to the S&P 500’s 16.5% gain. This might have investors contemplating their next move.
While the S&P 500 is up 16.5% since March 2025, S&P Global (currently trading at $544.40 per share) has lagged behind, posting a return of 10.1%. This may have investors wondering how to approach the situation.
Over the past six months, Gibraltar’s stock price fell to $61.18. Shareholders have lost 7.4% of their capital, which is disappointing considering the S&P 500 has climbed by 16.5%. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Since March 2025, Timken has been in a holding pattern, posting a small return of 3.9% while floating around $78.14. The stock also fell short of the S&P 500’s 16.5% gain during that period.
Moody's trades at $508.76 and has moved in lockstep with the market. Its shares have returned 12.2% over the last six months while the S&P 500 has gained 16.5%.
AutoZone trades at $4,229 and has moved in lockstep with the market. Its shares have returned 16.8% over the last six months while the S&P 500 has gained 16.5%.
NBT Bancorp currently trades at $42.80 per share and has shown little upside over the past six months, posting a small loss of 2%. The stock also fell short of the S&P 500’s 16.5% gain during that period.
