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.
Shares of fashion conglomerate G-III (NASDAQ:GIII)
jumped 3.3% in the afternoon session after investors reacted to a positive analyst note following the company's mixed second-quarter earnings report. The apparel company's stock initially fell after it lowered its full-year guidance, citing macroeconomic challenges and the expected impact from tariffs.
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 fell in the afternoon session after a surprisingly weak August jobs report fueled concerns of a cooling economy but also raised expectations for Federal Reserve interest rate cuts.
Fashion conglomerate G-III (NASDAQ:GIII) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 4.9% year on year to $613.3 million. On the other hand, next quarter’s revenue guidance of $1.01 million was less impressive, coming in 99.9% below analysts’ estimates. Its non-GAAP profit of $0.25 per share was significantly above analysts’ consensus estimates.
Fashion conglomerate G-III (NASDAQ:GIII) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, but sales fell by 4.9% year on year to $613.3 million. On the other hand, next quarter’s revenue guidance of $1.01 million was less impressive, coming in 99.9% below analysts’ estimates. Its non-GAAP profit of $0.25 per share was significantly above analysts’ consensus estimates.
Most consumer discretionary businesses succeed or fail based on the broader economy. Lately, it seems like demand trends have worked in their favor as the industry has returned 10.3% over the past six months,
similar to the S&P 500.
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.
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 Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Looking back on apparel and accessories stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including G-III (NASDAQ:GIII) and its peers.
A number of stocks jumped in the afternoon session after the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed.
