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.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. 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 4.1%. This drop was disappointing since the S&P 500 climbed 5.4%.
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.
Shares of local television broadcasting and media company Gray Television (NYSE:GTN)
jumped 19.4% in the morning session after multiple analysts raised their price targets on the stock, citing benefits from recent acquisitions and improvements to the company's balance sheet. The positive sentiment from Wall Street came from at least two firms. Benchmark raised its price target significantly to $9.00 from $7.00, maintaining a Buy rating. The firm's analyst noted that Gray's recent refinancing has 'completely revitalized' its balance sheet and that recent acquisitions were 'massively accretive and deleveraging.' Similarly, Wells Fargo increased its price target to $5.00 from $4.50, citing future benefits from deleveraging and free cash flow accretion tied to the company's mergers and acquisitions strategy. These upgrades followed Gray's announcement on August 8th that it would acquire television stations in ten markets from Allen Media Group.
Local television broadcasting and media company Gray Television (NYSE:GTN) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 6.5% year on year to $772 million. On the other hand, next quarter’s revenue guidance of $742.5 million was less impressive, coming in 5.1% below analysts’ estimates. Its non-GAAP loss of $0.48 per share was 76.2% below analysts’ consensus estimates.
Gray Media Inc (GTN) Q2 2025 earnings miss estimates with $772M revenue and -$0.42 EPS, sparking a 5% pre-market drop amid ongoing profitability concerns.
Local television broadcasting and media company Gray Television (NYSE:GTN) met Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 6.5% year on year to $772 million. On the other hand, next quarter’s revenue guidance of $742.5 million was less impressive, coming in 5.1% below analysts’ estimates. Its GAAP loss of $0.71 per share was significantly below 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.
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.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran.
Local television broadcasting and media company Gray Television (NYSE:GTN) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 5% year on year to $782 million. Its non-GAAP EPS of $0.24 per share was 50.6% above analysts’ consensus estimates.
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.
