Many investors pay attention to mid-cap stocks because they have established business models and expansive market opportunities. However, their paths to becoming $100 billion corporations are ripe with competition, ranging from giants with vast resources to agile upstarts eager to disrupt the status quo.
3 Consumer Stocks Skating on Thin Ice
Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars. This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 13.4%. This drop was much worse than the S&P 500’s 2% fall.
1 Russell 2000 Stock on Our Buy List and 2 to Turn Down
The Russell 2000 is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
3 Consumer Stocks in Hot Water
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. Surprisingly, the sector hasn’t played its shielding role over the past six months as it tumbled 9.7%. This performance was worse than the S&P 500’s 2% decline.
1 Stock Under $50 to Target This Week and 2 to Avoid
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.
1 Services Stock to Own for Decades and 2 to Avoid
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But increasing competition from AI-driven upstarts has tempered enthusiasm, and over the past six months, the industry has pulled back by 3.3%. This performance was similar to the S&P 500’s decline.
3 Services Stocks Skating on Thin Ice
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 3.3% over the past six months. This drop was almost identical to the S&P 500’s decline.
3 Market-Beating Stocks with Solid Fundamentals
Companies that consistently increase their sales, margins, or returns on capital are usually rewarded with the best returns, and those that can do all three for years on end are almost always the legendary stocks that return 100 times your money.
1 Semiconductor Stock to Target This Week and 2 to Ignore
Semiconductors are the silicon backbone of the digital revolution. But they’re also susceptible to economic fluctuations as chip demand will ebb and flow with capital spending. Unfortunately, the market seems to be predicting a downturn as the industry has tumbled by 18.3% over the past six months. This performance was much worse than the S&P 500’s 2% fall.
Bitcoin Miner Hut 8 Could Look to Acquire a Hyperscaler, Clear Street Says
The broker has a buy rating on the shares with a $23 price target.