Recent Articles from StockStory

TransDigm’s first quarter results for 2025 drew a negative market reaction after the company reported revenue that fell short of Wall Street’s expectations, despite demonstrating double-digit year-on-year growth. Management attributed the quarter’s performance to continued strength in commercial aftermarket and defense channels, while commercial OEM sales were flat. CEO Kevin Stein pointed out that “commercial aerospace market trends remain favorable,” but also noted lingering supply chain challenges and slower-than-anticipated recovery in commercial OEM production rates, especially at Boeing. The company’s non-GAAP margin performance remained robust, supported by higher-margin aftermarket activity.

Employers Holdings’ first quarter performance was marked by a notable divergence between revenue and profitability, as sales came in below Wall Street expectations while non-GAAP profit surpassed consensus estimates. Management attributed the revenue decline primarily to lower new business and audit premiums, a direct result of targeted underwriting and pricing actions in specific states to maintain profitability. CEO Katherine Antonello emphasized that, despite these headwinds, the company reached a new high in policies in force, reflecting strong customer retention. She also highlighted “meaningful progress” in reducing the underwriting expense ratio, and pointed to a 20% year-over-year increase in net investment income, which helped offset pressure from higher loss ratios and softer top-line growth.

Landstar’s first quarter results reflected a mix of freight market volatility and operational headwinds, as the company navigated soft demand and elevated insurance costs. Management cited a unique increase in truckload volumes—typically rare for the first quarter—partly driven by shippers advancing shipments ahead of potential tariffs. CEO Frank Lonegro also addressed a $4.8 million charge related to a supply chain fraud incident within its international freight forwarding segment, emphasizing that it was isolated and not connected to Landstar’s core North American truckload operations. Despite challenges, the company pointed to strong performance in its heavy-haul segment and continued discipline in cost management.

Ford’s first quarter results were met with a positive market response, as revenue and non-GAAP profit meaningfully exceeded Wall Street expectations despite a year-over-year decline in sales. Management attributed this outperformance to strong cost controls, robust pricing on new vehicle launches, and effective mitigation of tariff headwinds. CEO Jim Farley cited progress in warranty savings and streamlined material costs as key contributors, stating that “warranty spikes during launch are now at industry leading levels,” with recent product launches like the Expedition and Navigator supporting higher average transaction prices and faster dealer turnover.

Byrna's first quarter saw strong sales momentum, with management highlighting the impact of expanded retail partnerships and new direct-to-consumer (DTC) channel growth. CEO Bryan Ganz attributed the 57% revenue increase to effective channel expansion, including growth on Amazon and through key retail partners like Sportsman’s Warehouse. The company emphasized that operational moves, such as improved supply chain management and a focus on U.S.-sourced components, helped sustain gross margin improvements despite cost pressures. CFO Lauri Kearnes remarked that gross profit margin rose due to higher production volumes and efforts to improve manufacturability.

Potbelly’s first quarter results for 2025 were met with a notably positive market reaction, as the company surpassed Wall Street’s revenue and adjusted profit expectations. Management attributed the outperformance to sustained momentum in menu innovation, increased digital engagement, and disciplined cost controls. CEO Bob Wright highlighted the strong customer response to new offerings, stating, “Our customers responded positively” to recent menu additions, while also citing operational improvements and franchise expansion as key contributors. The company’s focus on expanding digital channels and delivering value through promotions further supported sales resilience during the period.

Energy Recovery's first quarter saw a significant shortfall versus Wall Street’s expectations, with the market reacting negatively to the results. Management attributed the quarter’s underperformance to a combination of delayed project revenue recognition and intensified tariff impacts, particularly affecting its desalination business. CEO David Moon acknowledged ongoing challenges, referencing “a lot of change in the past few quarters,” and emphasized that the team is actively working to offset tariff headwinds and stabilize operations. CFO Mike Mancini clarified that the missed revenue from a specific megaproject, amounting to roughly $2 million, was not the primary driver of the miss, as broader market and operational challenges persisted.

Zillow’s first quarter results for 2025 were shaped by strong expansion in its rental marketplace and continued gains from its Enhanced Markets strategy. Management credited the 13% revenue growth to higher multifamily property counts in Rentals, which saw a 47% increase in multifamily revenue, and growing adoption of digital tools like Real Time Touring. CEO Jeremy Wacksman also highlighted progress in integrating services across buyer and seller journeys, with Premier Agent and Zillow Home Loans working increasingly in tandem. CFO Jeremy Hofmann noted that cost discipline and operational leverage contributed to improved operating margins, despite persistent challenges in the broader housing market.

Northrop Grumman’s first quarter was marked by operational headwinds and financial results that fell short of Wall Street’s expectations, leading to a significant negative market reaction. Management largely attributed the underperformance to delays in government contract awards and a substantial pretax loss from the B-21 bomber program, which resulted from higher manufacturing and material costs as the company scaled up production. CEO Kathy Warden described the financial impact as “disappointing,” but emphasized ongoing progress in testing and production for key programs.

Paycom's first quarter results were met with a significant positive response from the market, reflecting strong execution across key areas of its business. Management attributed the quarter’s performance to accelerating adoption of Paycom’s automated solutions, notably its AI-driven products like Beti for payroll automation and GONE for time-off management. CEO Chad Richison highlighted a meaningful rise in new client bookings and unit sales, supported by improvements in the sales process and ongoing product innovation. The company also benefited from internal operational efficiencies, with automation initiatives reducing manual tasks and improving service metrics. While some external factors, such as declining interest income due to rate cuts, presented headwinds, these were largely offset by growth in recurring revenue and disciplined expense management.

Acushnet’s first quarter was marked by stability in revenue and profitability, which was well received by the market. Management attributed this performance to steady demand in its Titleist golf equipment and gear segments, supported by new product introductions such as the Pro V1 golf balls and GT Metals line. CEO David Maher highlighted that, despite weather-related slowdowns in parts of Asia and the U.S., the company saw broad-based growth in equipment sales and operational improvements in its gear division. Maher also noted that FootJoy, Acushnet’s footwear brand, experienced a planned decline in sales as the company prioritized premium product mix and reduced closeout volumes.

Dell’s first quarter results were shaped by strong demand for AI-optimized servers and growth across its core infrastructure and PC businesses. Management attributed revenue gains to robust enterprise and cloud service provider (CSP) orders, particularly for next-generation AI servers, and highlighted a sequential increase in large-scale deals. However, despite these topline gains, the market responded negatively as margin pressures in the PC segment and lower-than-expected non-GAAP earnings per share weighed on investor sentiment. CFO Yvonne McGill noted that “the demand environment remained soft” in the consumer PC market and described a more competitive pricing landscape, impacting overall profitability.

Applied Digital’s first quarter results were met with a significant negative market reaction, as revenue fell short of Wall Street expectations despite year-on-year growth. Management attributed the underperformance primarily to technical issues during a shift to an on-demand model in its Cloud Services segment, which temporarily limited revenue generation. CEO Wes Cummins acknowledged these setbacks, noting the company “experienced some technical hurdles as we move from a single tenant to a multi-tenant configuration.” The issues have since been resolved, but the transition period weighed on results.

CoreCivic’s first quarter results were met with a negative market reaction, despite the company delivering revenue and non-GAAP profit above Wall Street expectations. Management attributed the quarter’s performance to improved facility utilization and cost management, with CEO Damon Hininger highlighting “meaningful increases in facility utilization, which improved to 77% from 75.2% in the first quarter of the prior year.” The reactivation of key immigration facilities and expanded state contracts helped offset the impact of contract losses from the prior year, though operating margins declined due to changes in the mix of facility usage.

CDW began 2025 with results that outpaced Wall Street’s expectations, which was reflected in a notably positive market reaction to its first quarter performance. Management pointed to robust demand for client devices, partly driven by customers seeking to refresh aging technology and prepare for upcoming Windows 10 expiration and potential tariff-related price increases. CEO Christine Leahy credited the company’s “balanced portfolio of customer end-markets” and continued investment in high-growth areas such as cloud adoption, cybersecurity, and IT workflow optimization as key contributors to the quarter’s results.

RB Global’s first quarter results were well received by the market, as both revenue and adjusted earnings surpassed Wall Street’s expectations. Management attributed this outperformance primarily to robust growth in the automotive salvage segment and the successful integration of value-added services. CEO Jim Kessler pointed to a recent acquisition and continued investment in operational efficiency as key contributors, highlighting, “Our disciplined execution was evident again in this quarter.” The company also benefited from a higher service revenue take rate, which helped offset declines in commercial construction and transportation volumes.

Pitney Bowes delivered a first quarter that drew a positive market response, driven by strong margin expansion and disciplined cost management despite missing Wall Street's revenue expectations. Management attributed the quarter’s performance to high-margin stability in its SendTech and Presort businesses, as well as ongoing efforts to optimize corporate expenses. CEO Lance Rosenzweig noted, “We produced strong results that have enabled us to reiterate robust full year guidance and increase our dividend for the second consecutive quarter.” The company also highlighted the benefits of shifting focus toward lease extensions and prioritizing recurring revenues, which contributed to more predictable cash flows.

Rocket Companies delivered first quarter results that missed Wall Street’s revenue expectations, as management attributed the year-on-year sales decline to a challenging housing market and a sharp reversal in market momentum during April. CEO Varun Krishna pointed to higher mortgage rates and declining consumer sentiment as key factors that caused home purchase applications to fall, noting, “Weekly purchase applications actually declined by double digits throughout April, which the industry hasn’t experienced since 2009.” Despite these headwinds, management highlighted improvements in operational productivity, including a 21% increase in origination clients and efficiency gains driven by their AI platform.

Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 6%. This performance is a far cry from the S&P 500’s 7.5% ascent.

A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.

Quality compounders are flywheels. Said differently, they’re businesses that generate heaps of profits and consistently reinvest them to produce even more profits. Rinse and repeat.

The stocks featured in this article have all approached their 52-week highs. When these price levels hit, it typically signals strong business execution, positive market sentiment, or significant industry tailwinds.

From novel pharmaceuticals to telemedicine, most healthcare companies are on a mission to drive better patient outcomes. But speed bumps such as inventory destockings have persisted in the wake of COVID-19, and over the past six months, the industry has pulled back by 6%. This drop is a stark contrast from the S&P 500’s 7.5% gain.

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".

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.

A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.

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.

When Wall Street turns bearish on a stock, it’s worth paying attention. These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.

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.

A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.

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".

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.

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.

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

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.

Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.

While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

Whether you see them or not, industrials businesses play a crucial part in our daily activities. But this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. Thankfully, industrial end markets were stable over the past six months as the industry’s 7.2% gain has nearly mirrored the S&P 500.

A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.

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.

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

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’s bearish price targets for the stocks in this article signal serious concerns. Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.

The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.

Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.

Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.

Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains. This unpredictability can shake out even the most experienced investors.

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.

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.

Shareholders of 3D Systems would probably like to forget the past six months even happened. The stock dropped 44.8% and now trades at $1.80. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.

Over the last six months, agilon health’s shares have sunk to $2.30, producing a disappointing 5.3% loss - a stark contrast to the S&P 500’s 7.5% gain. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Universal Technical Institute currently trades at $31.80 and has been a dream stock for shareholders. It’s returned 402% since July 2020, blowing past the S&P 500’s 96.5% gain. The company has also beaten the index over the past six months as its stock price is up 28.4% thanks to its solid quarterly results.

Over the past six months, Atlassian’s shares (currently trading at $220.40) have posted a disappointing 9.1% loss, well below the S&P 500’s 7.5% gain. This might have investors contemplating their next move.

nLIGHT has been on fire lately. In the past six months alone, the company’s stock price has rocketed 67.9%, reaching $18.70 per share. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Since January 2025, MetLife has been in a holding pattern, posting a small loss of 2.5% while floating around $78.24. The stock also fell short of the S&P 500’s 7.5% gain during that period.

Pangaea currently trades at $5.19 per share and has shown little upside over the past six months, posting a small loss of 4.4%. The stock also fell short of the S&P 500’s 7.5% gain during that period.

Renasant has had an impressive run over the past six months as its shares have beaten the S&P 500 by 5.3%. The stock now trades at $38.20, marking a 12.9% gain. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Over the past six months, Interpublic Group’s shares (currently trading at $24.86) have posted a disappointing 6.7% loss, well below the S&P 500’s 7.5% gain. This might have investors contemplating their next move.

Metal coating and infrastructure solutions provider AZZ (NYSE:AZZ) missed Wall Street’s revenue expectations in Q2 CY2025 as sales rose 2.1% year on year to $422 million. The company’s full-year revenue guidance of $1.68 billion at the midpoint came in 0.5% below analysts’ estimates. Its non-GAAP profit of $1.78 per share was 11.7% above analysts’ consensus estimates.

Custom-engineered solutions manufacturer Methode Electronics (NYSE:MEI) announced better-than-expected revenue in Q1 CY2025, but sales fell by 7.3% year on year to $257.1 million. On the other hand, the company’s full-year revenue guidance of $950 million at the midpoint came in 9.1% below analysts’ estimates. Its non-GAAP loss of $0.77 per share was significantly below analysts’ consensus estimates.

Shares of mobile app advertising platform AppLovin (NASDAQ: APP) jumped 3.3% in the afternoon session after analysts at Scotiabank upgraded the stock to a "strong-buy" rating. The investment bank's positive reassessment of the mobile technology company has signaled renewed confidence in its growth prospects. This upgrade is the latest in a series of optimistic analyst ratings for AppLovin. Scotiabank's analyst highlighted that AppLovin has "blown through the Rule of 40," a key metric for software investors that balances revenue growth with profit margins. To pass the test, a company's combined growth rate and profit margin should exceed 40%.

Shares of digital medical services platform Teladoc Health (NYSE:TDOC) jumped 3.5% in the afternoon session after the company received a price target increase from an analyst at Evercore ISI Group. Evercore ISI analyst Elizabeth Anderson raised the firm's price target on the virtual healthcare company to $8.00 from $7.00, while maintaining an "In-Line" rating on the shares. 

Shares of radiation safety company Mirion (NYSE:MIR) jumped 3.6% in the afternoon session after an analyst at Robert W. Baird raised their price target on the shares. The firm increased its price objective on the nuclear measurement and analysis company to $22.00 from $20.00, while maintaining an "outperform" rating on the stock. This new target suggests a potential upside of nearly 7% from the stock's previous closing price. The "outperform" rating indicates that the analyst expects Mirion's stock to perform better than the average return of the broader market. This vote of confidence from Wall Street follows a period of positive momentum for the company, which operates in the nuclear energy, medical, and science sectors. The move signals growing optimism about Mirion's future performance and its position within the expanding nuclear energy industry.

Shares of cannabis company Tilray Brands (NASDAQ:TLRY) jumped 17.8% in the afternoon session after the stock rallied on growing optimism regarding federal marijuana reform. The move comes as investors anticipate the potential reclassification of cannabis from a Schedule I to a Schedule III substance under federal law. Such a change would be a significant catalyst for the industry, as it would acknowledge the medical use of cannabis and could ease the severe tax burdens currently imposed on cannabis companies.

Shares of semiconductor maker Penguin Solutions (NASDAQ:PENG) jumped 8.2% in the afternoon session after several Wall Street analysts raised their price targets on the company's stock. The bullish sentiment from Wall Street follows the company's third-quarter earnings report released the previous day. While Penguin Solutions reported a 7.9% year-over-year increase in revenue to $324 million, it slightly missed consensus estimates. However, the company posted a strong beat on non-GAAP earnings per share, surpassing analyst expectations. Buoyed by the solid earnings performance, particularly driven by its AI-related strategy, Penguin Solutions raised its full-year fiscal 2025 non-GAAP EPS guidance. 

Shares of sushi restaurant chain Kura Sushi (NASDAQ:KRUS) fell 11.6% in the afternoon session after its fiscal third-quarter earnings report revealed a concerning drop in customer traffic. While the technology-enabled Japanese restaurant chain reported a profit of $0.05 per share, reversing a loss from the prior year, and revenue of $74 million that topped analyst expectations, investors focused on a key underlying metric. 

Shares of coffeehouse chain Starbucks (NASDAQ:SBUX) jumped 3.1% in the pre market session after the company received strong interest for a stake in its China business, with bids valuing the unit at up to $10 billion. The coffee giant is reportedly evaluating non-binding offers from nearly 30 private equity firms, including both international and domestic players like Centurium Capital, Hillhouse Capital, The Carlyle Group, and KKR & Co. This strategic review comes as Starbucks faces intense competition in the crucial Chinese market. 

Shares of telehealth company Hims & Hers Health (NYSE:HIMS) jumped 4.1% in the morning session after the company announced plans to expand into Canada with a weight-loss solution centered on generic semaglutide. The telehealth company intends to launch its weight loss program in Canada in 2026, a move timed to coincide with the expected global debut of a generic version of semaglutide. Semaglutide is the active ingredient in popular and effective, but costly, branded weight-loss drugs like Ozempic and Wegovy. Hims & Hers aims to capture a significant portion of the Canadian market, where the company notes that about two-thirds of adults are overweight or obese. 

Shares of diabetes technology company Tandem Diabetes Care (NASDAQ:TNDM) fell 3.5% in the morning session after a Citi analyst downgraded the stock. Citi analyst Joanna Wuensch downgraded Tandem Diabetes Care from a "Neutral" to a "Sell" rating and significantly cut the price target on the shares to $24 from $35. This move signals rising concerns about the company's future performance and competitive position in the diabetes technology market. 

Shares of diagnostic imaging company RadNet (NASDAQ:RDNT) jumped 4% in the morning session after the company announced a major partnership expansion for its AI-powered breast cancer detection program. The diagnostic imaging services leader revealed that three large Southern California physician groups—Regal Medical Group, Lakeside Community Healthcare, and ADOC Medical Group—will now include RadNet's Enhanced Breast Cancer Detection (EBCD) program as a covered benefit for their members. This collaboration significantly widens the availability of RadNet's advanced artificial intelligence tools for mammography, aiming to improve early detection and screening compliance for nearly 600,000 individuals. 

Shares of healthcare professional network Doximity (NYSE:DOCS) jumped 3% in the morning session after Evercore ISI analyst upgraded the stock, citing the company's growth potential. 

Shares of genomics company Illumina (NASDAQ:ILMN) fell 4.2% in the morning session after a Citi analyst downgraded the stock to 'Sell' from 'Neutral' and lowered the price target. 

Shares of fuel cell technology Plug Power (NASDAQ:PLUG) jumped 20.8% in the morning session after it announced a new multi-year enhanced supply agreement with a major U.S.-based industrial gas partner. The agreement, which extends the partnership through 2030, is set to secure a reliable supply of liquid hydrogen for Plug Power's growing business. 

Shares of non-lethal weapons company Byrna (NASDAQ:BYRN) jumped 4.1% in the pre market session after an analyst at Roth Capital raised their price target on the shares. The firm boosted its target to $37.00 from $33.00 while maintaining a "buy" rating on the stock. This new price target suggests a potential upside of nearly 13% from the previous closing price. The move comes ahead of the non-lethal defense technology company's fiscal second-quarter 2025 earnings report, which is scheduled for release on Thursday, July 10. Investors are anticipating strong results, with analysts forecasting revenue to grow over 40% year-over-year to around $28.5 million. This optimism follows the company's preliminary announcement in early June of record second-quarter revenues, driven by high demand for its new Byrna Compact Launcher (CL).