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 number of stocks jumped in the afternoon session after the latest Consumer Price Index (CPI) report showed inflation holding steady, bolstering investor optimism for a potential interest rate cut by the Federal Reserve. The data, which revealed that inflation remained at 2.7% for the year ending in July, was seen as a positive sign by investors. This stability increases the likelihood that the Federal Reserve might lower interest rates at its upcoming September meeting. Lower interest rates can stimulate the economy by making borrowing cheaper for both consumers and businesses, which often translates into higher consumer spending. This is particularly beneficial for the Consumer Discretionary sector, which includes companies selling non-essential goods and services like apparel, travel, and electronics.
Bedding and comfort retailer Purple (NASDAQ:PRPL) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 12.6% year on year to $105.1 million. The company’s full-year revenue guidance of $475 million at the midpoint came in 1.7% above analysts’ estimates. Its non-GAAP loss of $0.11 per share was in line with analysts’ consensus estimates.
A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve.
Bedding and comfort retailer Purple (NASDAQ:PRPL) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 12.6% year on year to $105.1 million. The company’s full-year revenue guidance of $475 million at the midpoint came in 1.7% above analysts’ estimates. Its non-GAAP loss of $0.11 per share was in line with analysts’ consensus estimates.
A number of stocks fell in the afternoon session after the latest U.S. consumer confidence report revealed underlying weakness despite a headline increase, raising concerns about future spending. While the Conference Board's headline Consumer Confidence Index rose to 97.2 in July, the details painted a more cautious picture for investors. The Present Situation Index, a measure of consumers' assessment of current business and labor market conditions, actually fell. More telling for the sector, the report showed a decline in buying intentions for major discretionary items such as homes, cars, and most appliances. This combination of factors signals potential weakness in future consumer spending, casting a shadow over companies that rely on non-essential purchases.
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 Q1. Today, we are looking at home furnishings stocks, starting with La-Z-Boy (NYSE:LZB).
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Purple (NASDAQ:PRPL) and its peers.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Leggett & Platt (NYSE:LEG) and the best and worst performers in the home furnishings industry.
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the home furnishings stocks, including Mohawk Industries (NYSE:MHK) and its peers.
Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray,
and over the past six months, the industry has shed 1.6%. This drop was disheartening since the S&P 500 gained 6.2%.
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.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Lovesac (NASDAQ:LOVE) and its peers.
