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.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Online auto marketplace CarGurus (NASDAQ:CARG) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.3% year on year to $225.2 million. The company expects next quarter’s revenue to be around $232 million, close to analysts’ estimates. Its non-GAAP profit of $0.46 per share was 5.5% above analysts’ consensus estimates.
The Russell 2000 (^RUT) 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.
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. These themes have enabled rapid growth for the industry,
which has posted a 1.4% gain over the past six months.
This was a good place to be as the S&P 500 was flat.
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.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Online auto marketplace CarGurus (NASDAQ:CARG) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.3% year on year to $225.2 million. The company expects next quarter’s revenue to be around $232 million, close to analysts’ estimates. Its non-GAAP profit of $0.46 per share was 5.5% above analysts’ consensus estimates.
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.
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.
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 Q4. Today, we are looking at online marketplace stocks, starting with CarGurus (NASDAQ:CARG).
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.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how eHealth (NASDAQ:EHTH) and the rest of the online marketplace stocks fared in Q4.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at EverQuote (NASDAQ:EVER) and its peers.
CARGURUS INC could be undervalued. NASDAQ:CARG is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced.
