Latest news with #smallcap
Yahoo
2 days ago
- Business
- Yahoo
1 Small-Cap Stock to Consider Right Now and 2 to Turn Down
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. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one small-cap stock that could be the next big thing and two that may have trouble. Market Cap: $2.90 billion Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats. Why Should You Sell AAP? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Inability to adjust its cost structure while its revenue declined over the last year led to a 10.4 percentage point drop in the company's operating margin Short cash runway increases the probability of a capital raise that dilutes existing shareholders Advance Auto Parts is trading at $48.28 per share, or 22.6x forward P/E. Dive into our free research report to see why there are better opportunities than AAP. Market Cap: $2.10 billion Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America. Why Is TRN Not Exciting? Customers postponed purchases of its products and services this cycle as its revenue declined by 1.1% annually over the last five years Negative free cash flow raises questions about the return timeline for its investments 8× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly At $25.74 per share, Trinity trades at 3.9x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including TRN in your portfolio, it's free. Market Cap: $8.85 billion Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that's captured the hearts of coffee enthusiasts across the United States. Why Is BROS on Our Radar? Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth Same-store sales growth over the past two years shows it's successfully drawing diners into its restaurants Expected revenue growth of 23% for the next year suggests its market share will rise Dutch Bros's stock price of $69.55 implies a valuation ratio of 108.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
3 days ago
- Business
- Telegraph
This trust has increased shareholder payouts at more than triple the rate of inflation
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. Investors in the UK's small and mid-cap companies have endured a sustained period of truly abysmal performance. Having reached all-time highs in 2021, the FTSE 250 and FTSE Small-Cap indices subsequently slumped and currently trade 13pc and 9pc below their respective peaks. By contrast, the FTSE 100 index reached a new record high this year and currently trades just 2pc below it. In Questor's view, however, small and mid-cap stocks are now poised for a comeback. The UK economy's long-term outlook is becoming increasingly upbeat, with inflation due to fall to the Bank of England's 2pc target following a temporary rise in the short run. This should allow for a brisk pace of interest rate cuts that boost the economy's performance and create operating conditions that are more conducive to profit growth. Since small and mid-cap companies listed in the UK typically have significantly greater exposure to the domestic economy than their larger peers, they are likely to be the biggest beneficiaries of an improving economic outlook – and trading on dirt-cheap valuations after their recent demise, we are highly optimistic about their prospects over the long run. As a result, the JPMorgan UK Small Cap Growth & Income investment trust becomes the latest addition to our income portfolio. Although it has a rather humdrum historic yield of 3.1pc, its prospective income return currently amounts to roughly 4.4pc as a result of an updated policy that aims to pay 4pc of net assets as a dividend each year. Over the past three years, the trust's shareholder payouts have risen at an annualised rate of 21pc. This compares favourably to an inflation rate that has averaged a heady 6.3pc over the same period. Clearly, a dividend policy that pays out a fixed percentage of net assets each year is likely to equate to a highly changeable income stream for investors. This is especially the case given the trust's focus on smaller companies, whose share prices are inherently volatile. With a gearing ratio of just under 11pc, too, its share price could fluctuate to a significantly greater extent than the wider stock market.
Yahoo
3 days ago
- Business
- Yahoo
1 Small-Cap Stock with Impressive Fundamentals and 2 to Brush Off
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats. These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here is one small-cap stock that could be the next big thing and two best left ignored. Market Cap: $7.12 billion Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions. Why Are We Hesitant About SAIA? Underwhelming tons shipped over the past two years suggest it might have to lower prices to accelerate growth Earnings per share have dipped by 4.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term 15.7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $268.25 per share, Saia trades at 17.2x forward P/E. To fully understand why you should be careful with SAIA, check out our full research report (it's free). Market Cap: $245.7 million Based in Cleveland, Park-Ohio (NASDAQ:PKOH) provides supply chain management services, capital equipment, and manufactured components. Why Is PKOH Risky? Sales were flat over the last five years, indicating it's failed to expand this cycle Gross margin of 15.1% reflects its high production costs Free cash flow margin shrank by 5.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive Park-Ohio is trading at $18.12 per share, or 5.6x forward P/E. Check out our free in-depth research report to learn more about why PKOH doesn't pass our bar. Market Cap: $874.2 million Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products. Why Are We Backing QNST? Annual revenue growth of 31.4% over the last two years was superb and indicates its market share increased during this cycle Projected revenue growth of 10.1% for the next 12 months suggests its momentum from the last two years will persist Earnings per share grew by 103% annually over the last two years, massively outpacing its peers QuinStreet's stock price of $15.50 implies a valuation ratio of 14x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Bloomberg
4 days ago
- Business
- Bloomberg
Small Companies Keep Going Public Even as Russell 2000 Struggles
An increasing number of small-capitalization companies are going public this year despite the Russell 2000 Index 's underperformance, as investors shrug off trade and inflation risks in search of returns. 'The investment community is thirsty again for IPOs,' said Will Braeutigam, US capital markets transactions leader at Deloitte & Touche LLP.
Associated Press
4 days ago
- Business
- Associated Press
Under Construction: Four Stocks Capitalizing on the U.S. Building Boom
The U.S. construction industry is showing robust growth in 2025, with total construction spending reaching an annualized $2.19 trillion as of March—up nearly 3% year-over-year. Residential demand remains strong amid affordability pressures, while commercial, industrial, and infrastructure projects continue steady expansion. This broad-based momentum is creating fertile ground for companies operating across the construction and real estate sectors to capitalize on rising opportunities and innovation. With that solid industry tailwind, let's explore four stocks making waves in this dynamic market. JFB Construction Holdings (Nasdaq: JFB) continues to build on its momentum in 2025, announcing this week that it has signed over $69.5 million in new construction and development contracts across a broad range of verticals, including hospitality, commercial retail, industrial, high-end residential, and real estate development. The new deals come on the heels of a standout first quarter that saw JFB report a 93% year-over-year revenue increase, further solidifying its early status as one of the more intriguing small-cap entrants in the real estate and construction space. 'This achievement is such an important milestone for our company,' said CEO Joseph F. Basile, III, noting that the diverse portfolio of new projects reinforces JFB's ability to leverage its relationships and operational strengths across multiple sectors. 'Our ability to keep our promises to our customers remains paramount to our continued success.' Since its Nasdaq debut in March via a $5.16 million IPO, JFB has been aggressive in securing high-value projects that reflect both its operational ambition and sector versatility. In April, the company kicked off construction on its largest residential development to date—a $21 million, 79-unit luxury townhome community in Port Salerno, Florida. That was followed by the announcement of a $15 million contract for a 103,000-square-foot luxury auto storage facility in Charlotte, NC, marking the company's largest industrial project to date. Earlier this month, JFB deepened its push into the hospitality sector, signing two significant deals with Marriott Hotels. The first, a $18 million co-development of a new Courtyard by Marriott in Olive Branch, Mississippi, showcased JFB's evolution into a true development partner. The second was a $6.7 million contract to convert a Holiday Inn into a Courtyard by Marriott in Melbourne, Florida. According to Basile, these back-to-back hospitality wins are expected to be 'key to establishing long-term brand relationships and future pipeline growth.' Taken together, these recent announcements offer a clear picture of JFB's post-IPO strategy: secure high-value, high-visibility projects across multiple sectors while reinforcing its brand as a versatile, trustworthy contractor with national reach. As of May, JFB has provided services in 36 states and is increasingly targeting regions with rapid population growth and infrastructure demand. JFB appears to be executing on its growth blueprint with speed and focus. The $69.5 million in new contracts is not only a headline number, it's a statement that JFB aims to scale aggressively while maintaining the relationship-driven, hands-on approach that built its foundation. Prologis (NYSE: PLD) continues to reinforce its position as the backbone of global logistics infrastructure. The industrial REIT recently declared another $1.01 per-share quarterly dividend—unchanged from the March payout and part of a 5% year-over-year increase—underscoring its stability and ongoing commitment to shareholder returns. The company's Q1 earnings report highlights a robust balance sheet, including $6.5 billion in available liquidity and a low debt-to-EBITDA ratio of 4.9x. With 96% of equity exposure and nearly all forecasted earnings through 2027 denominated in or hedged to the U.S. dollar, Prologis remains well insulated from currency volatility. In April, Prologis led an initiative with other major industrial REITs to standardize non-GAAP property metrics such as occupancy, retention, and rent change—an effort aimed at improving sector-wide transparency and investor comparability. The move reinforces Prologis' position as a sector leader not just in scale, but in setting best practices across the industry. With a weighted average interest rate of just 3.2% on total debt and a long-term funding horizon, PLD enters the second half of 2025 with substantial financial flexibility and sector-defining relevance. While smaller names are chasing growth, Prologis is proving that size and discipline remain powerful long-term advantages. Lennar Corporation (NYSE: LEN) continues to navigate a challenging housing market while executing its strategic shift toward an asset-light, technology-driven homebuilding model. The company reported first quarter 2025 revenues of $7.2 billion, driven by a 6% rise in home deliveries to 17,834, even as average sales prices softened slightly to $408,000 amid persistent affordability pressures. Lennar's operational efficiency improved, with cycle times down 11% year over year and inventory turns increasing to 1.7 times, reflecting tighter inventory management. The company's disciplined use of incentives, including interest rate buydowns, has helped maintain sales momentum and manage supply despite a macroeconomic environment marked by high inflation and consumer uncertainty. Financially, Lennar remains solid, ending the quarter with $2.3 billion in cash and no borrowings on its $3 billion revolving credit facility. Its balance sheet strength was further bolstered by a $703 million share repurchase program and the completion of the Millrose spin-off, which accelerates Lennar's transition to a pure-play homebuilder. The acquisition of Rausch Coleman Homes expanded Lennar's presence in key Southern and Midwestern markets, reinforcing its geographic footprint. Meanwhile, the company continues to grow its multifamily segment through Quarterra Multifamily, which recently launched leasing at The Ansel, a luxury apartment community in Frisco, Texas. Looking ahead, Lennar expects second quarter home deliveries of 19,500 to 20,500 and anticipates maintaining gross margins near 18%, underscoring its focus on balancing growth with profitability as market conditions evolve. Toll Brothers (NYSE: TOL) reported solid Q2 fiscal 2025 results on May 20, 2025, while expanding in luxury residential markets through new home communities and apartment developments. For the quarter ending April 30, 2025, Toll Brothers posted net income of $352.4 million, or $3.50 per diluted share, compared to $481.6 million, or $4.55 per share, a year earlier. The prior year included a $124 million land sale gain, which when excluded, offers a more comparable basis. Home sales revenues reached a record $2.71 billion, up 2% year-over-year, driven by a 10% increase in home deliveries to 2,899 units. Net signed contract value declined 11% to $2.60 billion, and backlog fell 7% to $6.84 billion. Margins remained steady with a home sales gross margin of 26.0%, slightly above last year's 25.8%. Adjusted home sales gross margin stood at 27.5%, reflecting effective cost controls amid inflation. Chairman and CEO Douglas Yearley, Jr. highlighted Toll Brothers' diversified luxury portfolio and strategic discipline, noting, 'Record home sales revenues significantly exceeded expectations, underscoring broad appeal across price points and markets.' The company increased its quarterly dividend by 9% to $0.25 per share, signaling confidence in cash flow and shareholder returns. Toll Brothers Apartment Living, the rental division, recently opened Navona, a 400-unit luxury apartment community in Mesa, Arizona, featuring upscale finishes, smart home tech, and resort-style amenities tailored to one of Phoenix's fastest-growing submarkets. In single-family housing, the company announced Toll Brothers at HighPoint, a gated Scottsdale community with 122 home sites priced from $1.9 million, and final opportunities to build in Laurel Pointe, Orlando, with homes from $1.7 million. Toll Brothers invested approximately $723 million in land during Q2, adding 4,380 lots and growing its land bank to roughly 78,600 lots to support future growth. The company reaffirmed fiscal 2025 guidance of 11,200 to 11,600 home deliveries and an adjusted home sales gross margin near 27.25%, ending the quarter with $686.5 million in cash and $2.19 billion in available credit. With its leadership in luxury homebuilding, expanding multifamily portfolio, and strong financial footing, Toll Brothers is positioned to meet ongoing demand for high-end Contact Company Name: RazorPitch Contact Person: Mark McKelvie Email: Send Email City: NAPLES State: Florida Country: United States Website: Press Release Distributed by To view the original version on ABNewswire visit: Under Construction: Four Stocks Capitalizing on the U.S. Building Boom
