CBIZ, Inc. Common Stock (CBZ)

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

A number of stocks jumped in the afternoon session after markets continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.

Financial services provider CBIZ (NYSE:CBZ) missed Wall Street’s revenue expectations in Q2 CY2025, but sales rose 62.7% year on year to $683.5 million. On the other hand, the company’s full-year revenue guidance of $2.88 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.95 per share was 12.6% above analysts’ consensus estimates.

Growth is oxygen. But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.

Financial services provider CBIZ (NYSE:CBZ) fell short of the market’s revenue expectations in Q2 CY2025, but sales rose 62.7% year on year to $683.5 million. On the other hand, the company’s full-year revenue guidance of $2.88 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.95 per share was 12.6% above analysts’ consensus estimates.

Financial services provider CBIZ (NYSE:CBZ) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.

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.

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.

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

Business services providers thrive by solving complex operational challenges for their clients, allowing them to focus on their secret sauce. Still, investors are uneasy as firms face challenges from AI-driven disruptors and tightening corporate budgets. These doubts have caused the industry to lag recently as services stocks have collectively shed 10.9% over the past six months. This drawdown was worse than the S&P 500’s 1.9% decline.

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. 

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how business process outsourcing & consulting stocks fared in Q1, starting with CBIZ (NYSE:CBZ).

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.

Financial services provider CBIZ (NYSE:CBZ) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 69.5% year on year to $838 million. The company’s full-year revenue guidance of $2.88 billion at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP profit of $2.29 per share was 8.7% above analysts’ consensus estimates.

Shares of financial services provider CBIZ (NYSE:CBZ) fell 13.1% in the afternoon session after the company reported mixed first-quarter 2025 results, which included an EPS beat, but revenue missed significantly, and full-year revenue guidance fell short. Management lowered its full-year revenue guidance, citing uncertainty around client demand for project-based services and a larger mix of episodic revenue later in the year. Overall, this quarter could have been better.

Financial services provider CBIZ (NYSE:CBZ) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 69.5% year on year to $838 million. The company’s full-year revenue guidance of $2.88 billion at the midpoint came in 1.6% below analysts’ estimates. Its non-GAAP profit of $2.29 per share was 8.7% above analysts’ consensus estimates.

Financial services provider CBIZ (NYSE:CBZ) will be reporting results tomorrow before market hours. Here’s what investors should know.

Wall Street has set ambitious price targets for the stocks in this article. While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.