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.
Retailers are adapting their business models as technology changes how people shop. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 2%. This drop was disheartening since the S&P 500 gained 5.7%.
The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
A number of stocks jumped in the afternoon session after markets rebounded following a sharp sell-off in the previous trading session as a weaker-than-expected July jobs report fueled investor hopes for a potential interest rate cut.
Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence.
With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
Shares of clothing and footwear retailer Boot Barn (NYSE:BOOT)
fell 3.3% in the morning session after an analyst at Jefferies downgraded the stock, citing concerns over the company's valuation.
Businesses with strong free cash flow tend to be more adaptable and resilient.
Some of these companies shine bright by using their cash wisely to strengthen their market positions.
Stay informed about the performance of the S&P500 index in the middle of the day on Monday. Uncover the top gainers and losers in today's session for valuable insights.
