Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. On the other hand, they usually underperform during bull runs,
and this paradigm has rung true over the past six months as the sector’s -1.4% decline paled in comparison to the S&P 500’s 5.2% gain.
A number of stocks fell in the pre-market session after markets pulled back amid hotter-than-expected inflation data. The main concern for investors was the July Producer Price Index (PPI), a measure of wholesale inflation. The higher-than-expected reading suggests that companies could face squeezed profit margins due to rising costs. This also reduces the likelihood of the Federal Reserve cutting interest rates, which could further dampen economic activity. Compounding these inflation fears are multiple reports signaling a weakening consumer.
A number of stocks jumped in the afternoon session after markets continued to rally as a surprisingly subdued inflation report fueled hopes for an imminent interest rate cut from the U.S. Federal Reserve. The July Consumer Price Index (CPI) report showed a year-over-year increase of 2.7%, which was slightly below market expectations. This tamer-than-expected inflation data was viewed by investors as a key signal that price pressures are easing. As a result, the market has strengthened its conviction that the U.S. Federal Reserve will implement an interest rate cut in September. The prospect of lower borrowing costs tends to boost corporate profitability and can stimulate economic activity, creating a more favorable environment for consumer-facing companies and fueling a broad-based market rally.
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.
Snack food company Utz Brands (NYSE:UTZ) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 3% year on year to $366.7 million. Its non-GAAP profit of $0.17 per share was 5.6% below analysts’ consensus estimates.
Snack food company Utz Brands (NYSE:UTZ) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 3% year on year to $366.7 million. Its non-GAAP profit of $0.17 per share was 5.6% below analysts’ consensus estimates.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
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.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Snack food company Utz Brands (NYSE:UTZ) announced better-than-expected revenue in Q1 CY2025, with sales up 1.6% year on year to $352.1 million. Its non-GAAP profit of $0.16 per share was in line with analysts’ consensus estimates.
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 shelf-stable food stocks, starting with Utz (NYSE:UTZ).
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.
Snack food company Utz Brands (NYSE:UTZ) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 1.6% year on year to $352.1 million. Its non-GAAP profit of $0.16 per share was in line with analysts’ consensus estimates.
