Recent Articles from StockStory

Shares of financial regulatory software provider Donnelley Financial Solutions (NYSE:DFIN) jumped 7.3% in the afternoon session after the company reported fourth-quarter earnings and revenue that significantly beat analyst expectations. 

Shares of affordable single-family home construction company LGI Homes (NASDAQ:LGIH) fell 7.5% in the afternoon session after the company reported disappointing fourth-quarter 2025 results that showed significant declines in key financial metrics. 

Shares of bedding manufacturer Somnigroup (NYSE:SGI) fell 6.8% in the afternoon session after the company reported fourth-quarter financial results where its revenue and full-year 2026 earnings forecast missed analyst expectations. 

Shares of AI lending platform Upstart (NASDAQ:UPST) jumped 3.7% in the afternoon session after Compass Point upgraded the stock to Neutral from Sell and raised its price target. 

Shares of security hardware provider Allegion (NYSE:ALLE) fell 7.7% in the afternoon session after the company reported fourth-quarter earnings that missed Wall Street estimates and issued a weaker-than-expected forecast for the full year 2026. 

Shares of aerospace and defense company AeroVironment (NASDAQ:AVAV) jumped 7.7% in the afternoon session after JPMorgan initiated coverage on the stock with an 'Overweight' rating and a $320 price target. 

Shares of cruise company Norwegian Cruise Line (NYSE:NCLH) jumped 12.3% in the afternoon session after activist investor Elliott Management built a stake of more than 10% in the cruise operator and planned to push for changes at the company. 

Shares of construction materials company Vulcan Materials (NYSE:VMC) fell 5.5% in the afternoon session after the company reported weak fourth-quarter 2025 earnings and issued a disappointing financial outlook for 2026. 

Shares of auto and industrial parts retailer Genuine Parts (NYSE:GPC) fell 14.1% in the afternoon session after the company reported fourth-quarter 2025 results that missed analyst expectations and provided a weak forecast for the upcoming year, causing shares to fall. 

Shares of healthcare diagnostics company Labcorp Holdings (NYSE:LH) fell 2.7% in the afternoon session after the company reported fourth-quarter revenue that fell short of Wall Street's expectations, overshadowing an earnings beat. 

Shares of document technology company Xerox (NASDAQ:XRX) jumped 3.7% in the afternoon session after the company announced it had raised $450 million for a new joint venture with global alternative asset management firm TPG and revealed a new global sales structure. 

Resource management provider Itron (NASDAQ:ITRI) reported Q4 CY2025 results exceeding the market’s revenue expectations, but sales fell by 6.7% year on year to $571.7 million. On the other hand, next quarter’s revenue guidance of $570 million was less impressive, coming in 1.8% below analysts’ estimates. Its non-GAAP profit of $2.46 per share was 12.4% above analysts’ consensus estimates.

Affordable single-family home construction company LGI Homes (NASDAQ:LGIH) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 15% year on year to $474 million. Its non-GAAP profit of $0.97 per share was 6.2% above analysts’ consensus estimates.

Hardware products and merchandising solutions provider Hillman (NASDAQ:HLMN) missed Wall Street’s revenue expectations in Q4 CY2025 as sales rose 4.5% year on year to $365.1 million. The company’s full-year revenue guidance of $1.65 billion at the midpoint came in 1.9% below analysts’ estimates. Its non-GAAP profit of $0.10 per share was in line with analysts’ consensus estimates.

Equipment distributor Watsco (NYSE:WSO) missed Wall Street’s revenue expectations in Q4 CY2025, with sales falling 10% year on year to $1.58 billion. Its GAAP profit of $1.68 per share was 11% below analysts’ consensus estimates.

Oncology (cancer) diagnostics company NeoGenomics (NASDAQ:NEO) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 10.6% year on year to $190.2 million. The company expects the full year’s revenue to be around $797 million, close to analysts’ estimates. Its non-GAAP profit of $0.06 per share was $0.02 above analysts’ consensus estimates.

Infrastructure and agriculture equipment manufacturer Valmont Industries (NYSE:VMI) fell short of the market’s revenue expectations in Q4 CY2025, with sales flat year on year at $1.04 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $4.3 billion at the midpoint. Its GAAP profit of $9.05 per share was 83.1% above analysts’ consensus estimates.

Construction materials company Vulcan Materials (NYSE:VMC) fell short of the market’s revenue expectations in Q4 CY2025 as sales rose 3.2% year on year to $1.91 billion. Its non-GAAP profit of $1.70 per share was 19.5% below analysts’ consensus estimates.

Financial regulatory software provider Donnelley Financial Solutions (NYSE:DFIN) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 10.4% year on year to $172.5 million. On the other hand, next quarter’s revenue guidance of $205 million was less impressive, coming in 1.1% below analysts’ estimates. Its non-GAAP profit of $0.70 per share was 70.7% above analysts’ consensus estimates.

Auto and industrial parts retailer Genuine Parts (NYSE:GPC) fell short of the market’s revenue expectations in Q4 CY2025 as sales rose 4.1% year on year to $6.01 billion. Its non-GAAP profit of $1.55 per share was 14.8% below analysts’ consensus estimates.

Healthcare diagnostics company Labcorp Holdings (NYSE:LH) fell short of the market’s revenue expectations in Q4 CY2025, but sales rose 5.6% year on year to $3.52 billion. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $14.7 billion at the midpoint. Its non-GAAP profit of $4.07 per share was 3.2% above analysts’ consensus estimates.

Bedding manufacturer Somnigroup (NYSE:SGI) fell short of the market’s revenue expectations in Q4 CY2025, but sales rose 54.7% year on year to $1.87 billion. Its non-GAAP profit of $0.72 per share was in line with analysts’ consensus estimates.

Equipment rental company Herc Holdings (NYSE:HRI) fell short of the market’s revenue expectations in Q4 CY2025, but sales rose 27.1% year on year to $1.21 billion. The company’s full-year revenue guidance of $4.34 billion at the midpoint came in 14.2% below analysts’ estimates. Its non-GAAP profit of $2.07 per share was 11% above analysts’ consensus estimates.

Building materials company Builders FirstSource (NYSE:BLDR) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 12.1% year on year to $3.36 billion. On the other hand, the company’s full-year revenue guidance of $15.3 billion at the midpoint came in 1.1% above analysts’ estimates. Its non-GAAP profit of $1.12 per share was 12.3% below analysts’ consensus estimates.

Security hardware provider Allegion (NYSE:ALLE) met Wall Street’s revenue expectations in Q4 CY2025, with sales up 9.3% year on year to $1.03 billion. Its non-GAAP profit of $1.94 per share was 2% below analysts’ consensus estimates.

Defense contractor Leidos (NYSE:LDOS) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 3.6% year on year to $4.21 billion. The company’s full-year revenue guidance of $17.7 billion at the midpoint came in 1.1% below analysts’ estimates. Its non-GAAP profit of $2.76 per share was 5.9% above analysts’ consensus estimates.

Teradata’s Q4 results were met with a strong positive market reaction, reflecting better-than-expected execution across key areas. Management attributed the upside to a resurgence of customer interest in hybrid cloud and on-premise deployments, with demand spurred by new AI-focused products and services. CEO Steve McMillan highlighted, “We stabilized the business, meaningfully improved retention, and saw customers choosing to expand their use of Teradata with a mix of both traditional and new types of workloads.” Operational discipline and improved consulting services margins also contributed to the solid quarter.

WESCO’s fourth quarter saw a muted market response, as the company's non-GAAP earnings per share fell short of Wall Street’s expectations despite sales growth in line with analyst forecasts. Management attributed the positive revenue trend to exceptional performance in its data center solutions business, which reported approximately 30% year-over-year growth, as well as solid results from communications, security, and electrical solutions. However, CEO John Engel acknowledged that ongoing sales and margin pressures in the utility and broadband segment, particularly with public power customers, remained a significant challenge. Engel also noted, "We saw a clear inflection back to growth with our investor-owned utilities in the second quarter of last year."

Cloudflare’s fourth quarter results were met with a strong positive market reaction, as the company’s focus on enterprise sales and AI-driven demand underscored its performance. Management credited the acceleration in large customer growth and an expanding pipeline of high-value deals as key contributors to the quarter’s outperformance. CEO Matthew Prince highlighted, “We blew away our previous record for new ACV in the quarter, with strong year-over-year and quarter-over-quarter acceleration,” while emphasizing Cloudflare’s strategic positioning as a “must-have” platform for both traditional and AI-native customers.

Xylem’s fourth quarter results were driven by disciplined execution and operational improvements across its portfolio, though the market reacted negatively due to concerns about future growth. Management highlighted progress on its operating model transformation, which included simplifying the company’s structure, improving on-time delivery, and reducing layers in the organization. CEO Matthew Pine emphasized that the “numbers we posted this morning reflect the ground we’ve already taken,” citing gains from increased productivity and focused resource allocation. However, the company acknowledged transient softness in several segments, particularly in China and analytics, as deliberate exits from low-margin businesses created short-term revenue pressure.

Lattice Semiconductor’s fourth quarter was marked by robust growth, reflecting strong demand in both data center artificial intelligence (AI) and physical AI applications. Management credited the quarter’s performance to expanded adoption of its low-power field-programmable gate arrays (FPGAs), which serve as companion chips in a wide array of systems. CEO Ford Tamer emphasized that Lattice’s solutions are now “being widely adopted at an accelerating rate,” noting that the company’s attach rates and average selling prices both increased. The business also benefited from successful normalization of channel inventory and record design wins across computing and communications sectors.

Masco’s fourth quarter results were viewed favorably by the market despite revenue falling short of Wall Street expectations. Management attributed the quarter’s performance to strong pricing actions in plumbing, cost savings initiatives, and ongoing market share gains in key brands like Delta Faucet and Behr. CEO Jonathon Nudi pointed to Delta’s robust trade and e-commerce growth and highlighted that “our pro paint market share has grown over 200 basis points since 2019,” citing expanded delivery options and a growing sales force as contributors. The company also noted significant headwinds from lower volumes and elevated tariff and commodity costs, particularly in the Decorative Architectural segment.

Pegasystems’ fourth quarter saw revenue and profit metrics exceed Wall Street expectations, but the market responded negatively as operating margin contracted significantly year over year. Management attributed the growth in sales to accelerated adoption of its cloud-first strategy and the increased use of Blueprint, the company’s AI-powered design agent. However, COO and CFO Ken Stillwell noted that while total annual contract value (ACV) rose and cloud-related backlog expanded, near-term profit margins were affected by ongoing investments in innovation and a shift in the business mix toward subscription revenues. CEO Alan Trefler acknowledged that, despite notable top-line performance, the company remains focused on balancing growth and operational efficiency.

Hasbro’s fourth-quarter results were well received by the market, reflecting significant growth in both revenue and profitability. Management attributed the strong performance to the resurgence of its consumer products division, led by MONOPOLY, Peppa Pig, and Marvel, as well as remarkable momentum in its Wizards of the Coast segment. CEO Chris Cocks highlighted the success of Magic: The Gathering, noting that “Magic delivered a record fourth quarter,” and credited robust player growth and expanded distribution for the gains. Cost transformation initiatives and improved product mix also contributed to notable margin expansion.

Zillow’s fourth quarter was marked by double-digit revenue growth and a substantial improvement in operating margin, but the market responded negatively, reflecting concerns about profitability and rising legal expenses. Management attributed the strong topline gains to accelerating momentum in rentals—especially multifamily—and continued expansion of its integrated enhanced markets strategy. CEO Jeremy Wacksman cited traction in software tools like Follow-up Boss and growth in mortgage originations as key contributors, while CFO Jeremy Hofmann noted that higher-than-anticipated legal costs weighed on margins.

Trimble’s fourth quarter results reflected a mixed environment, with the company surpassing Wall Street’s expectations for both revenue and non-GAAP earnings per share despite a modest year-on-year decline in overall sales. Management pointed to the strength of recurring revenue streams—now representing nearly two-thirds of its business—as a key driver, particularly in the AECO (architecture, engineering, construction, and operations) and Field Systems segments. CEO Robert Painter highlighted the company’s “compounding returns” from its Connect & Scale platform strategy, emphasizing the expansion of software and services as well as growing adoption of AI-powered tools that automate customer workflows and unlock efficiencies across construction and logistics.

Assurant’s fourth quarter results reflected continued expansion in its housing and lifestyle segments, but the market responded negatively to the results. Management highlighted the impact of ongoing investments in new product initiatives, such as the launch of home warranty offerings, and the resilience of its core housing business. CEO Keith Demmings credited double-digit growth in adjusted EBITDA, excluding catastrophe losses, to scale in mobile device protection and strong demand in lender-placed insurance. However, he acknowledged that “year-over-year growth was impacted by an unfavorable $7 million non-run rate mobile inventory adjustment in Connected Living.”

NMI Holdings’ fourth quarter results reflected steady execution and consistency, with management attributing performance to expansion of its insured mortgage portfolio and disciplined expense control. CEO Adam Pollitzer highlighted strong new insurance written (NIW) volume and record primary insurance in force, which he described as “the fastest-growing, highest-quality, and best-performing in the MI industry.” Management also cited the success of reinsurance programs and ongoing customer development as key elements supporting the quarter’s results.

Harley-Davidson delivered fourth quarter results that exceeded Wall Street’s revenue expectations, though profitability remained under significant pressure. Management attributed this to deliberate efforts to reduce elevated dealer inventory, especially touring models in North America, and to targeted promotions intended to accelerate retail performance. CEO Arthur Starrs noted, “These actions are beginning to deliver results,” citing improved dealer profitability and positive rider response late in the quarter. However, the leadership team acknowledged that the quarter did not reflect the company’s full potential, highlighting the impact of both macroeconomic challenges and internal operational changes.

Freshworks delivered fourth-quarter results that surpassed Wall Street’s revenue and profitability expectations, yet the market responded negatively. Management attributed performance to continued strength in the employee experience (EX) business, expansion into larger enterprise deals, and growing adoption of its AI-powered solutions. CEO Dennis Woodside emphasized, “We are witnessing a generational shift where midsize and larger enterprise organizations expect sophisticated software that can handle their complex needs and get fast time to value.” The customer experience (CX) segment stabilized, driven by product simplification and steady AI feature uptake, while broad-based upmarket momentum played a significant role in the company’s ability to consistently win larger deals.

Fiserv’s Q4 results were met positively by the market as management emphasized stable, broad-based business activity and highlighted execution on its strategic initiatives. CEO Michael Lyons noted that “Q4 results demonstrated stable broad-based business activity trends,” with particular focus on investment in client service and technology modernization. Management attributed the flat sales performance to a mix of industry-wide softness in segments like U.S. restaurant and retail, as well as deliberate decisions to invest in long-term growth and customer retention. Despite these near-term headwinds, Fiserv saw notable contributions from both its Merchant and Financial Solutions segments and continued to win new and expanded client agreements.

BlackLine’s fourth quarter results met Wall Street’s revenue expectations, with management attributing performance to strong momentum in enterprise and mid-market segments, successful platform pricing adoption, and higher bookings from existing customers. CEO Owen Ryan emphasized the company’s shift toward larger, long-term customer contracts and noted that nearly three-quarters of new bookings came from installed base expansions. Ryan highlighted that BlackLine’s suite of solutions for the CFO is now gaining greater traction among large organizations, supported by a modernized go-to-market engine and a partner-first sales approach. The quarter also saw notable customer wins in sectors such as financial services, oil and gas, and technology, confirming BlackLine’s value proposition for complex, global organizations.

Robinhood’s fourth quarter results drew a negative market reaction, as the company missed Wall Street’s revenue expectations despite strong year-on-year growth. Management attributed this outcome to robust adoption in its active trading features, including surging prediction market and shorting volumes, as well as ongoing product launches. CEO Vladimir Tenev highlighted that “prediction market volumes doubled, more than doubled yet again” during the quarter, while new offerings like the Gold Card and expanded equities tools gained traction. However, management acknowledged that operating margins compressed from last year as the company invested aggressively in new business lines and international expansion.

Advanced Energy’s fourth quarter saw a positive market response, reflecting outperformance in key segments and operational execution. Management identified rising demand in the semiconductor, industrial, and medical markets as the primary contributors to the strong results, with particular emphasis on the company’s success in data center computing. CEO Steve Kelley highlighted that data center revenue more than doubled year over year, attributing it to the adoption of Advanced Energy’s customized power solutions by hyperscalers for AI rack applications. Kelley also pointed to the benefits of the company’s diversification strategy and recent operational capacity expansions in the Philippines, Mexico, and Thailand.

Zimmer Biomet’s fourth quarter results were greeted positively by the market, with management crediting strong execution in the U.S. and robust demand for recently launched products as key drivers. CEO Ivan Tornos highlighted the impact of new product adoption, especially in knee and hip implants, and the effectiveness of direct-to-patient marketing campaigns. Tornos pointed to continued gains in robotics and navigation technologies, as well as double-digit growth in the company’s cranio-maxillofacial and upper extremities segments. The quarter also benefited from capital equipment sales and higher procedure volumes, with Tornos emphasizing, “the lion’s share of the performance is better execution,” especially on recent product launches.

Entegris delivered fourth-quarter results that were well received by the market, as revenue and non-GAAP earnings per share surpassed Wall Street’s expectations despite a modest year-over-year sales decline. Management credited the positive performance to continued strength in advanced node semiconductor applications, particularly in CMP consumables, liquid filtration, and selective etch products. CEO David Reeder highlighted that the company’s operational execution, including increased production volumes and disciplined working capital management, supported both margin stability and improved free cash flow.

Coca-Cola’s fourth quarter was marked by a modest year-on-year increase in sales, but revenue came in below Wall Street expectations, prompting a negative market reaction. Management attributed the results to mixed global consumer demand and challenging external environments, with CEO-elect Henrique Braun noting that "volume improved each month during the fourth quarter" despite flat growth for the year. The quarter also saw continued investments in product innovation and targeted marketing, particularly in North America and emerging markets.

Ford’s Q4 performance reflected a complex mix of cost headwinds, supply challenges, and evolving product demand. Management highlighted the impact of temporary aluminum supply disruptions, increased tariff expenses, and a deliberate shift in vehicle mix as primary drivers behind the quarter’s results. CEO Jim Farley described the company’s approach as “decisive,” noting progress in cost and quality improvements, the recall of older vehicles to address reliability, and rising U.S. market share. CFO Sherry House acknowledged both material and warranty cost savings, but also pointed to the unplanned Novelis supply chain issues and late-year tariff changes as major factors affecting margins.

Marriott’s fourth quarter results were well received by the market, reflecting a combination of robust global demand, continued expansion of its property portfolio, and strength in higher-end travel segments. Management emphasized that a surge in new property signings, rapid integration of conversion properties, and resilient leisure and luxury travel contributed meaningfully to the company’s performance. CEO Anthony Capuano highlighted that “about 75% of our conversion openings opened within twelve months of signing,” underscoring operational momentum. The Bonvoy loyalty program also continued to grow, with 43 million new members joining in the year.

Quest Diagnostics delivered a Q4 performance that exceeded Wall Street’s revenue and earnings expectations, prompting a positive market reaction. Management attributed this outcome to strong organic growth across physician, hospital, and consumer channels, with advanced diagnostics and recent partnerships like Fresenius Medical Care and Corewell Health contributing significant volume gains. CEO Jim Davis cited the company’s expansion in specialized testing—such as Alzheimer’s and autoimmune diagnostics—and collaborations that broadened geographic and health plan access as key drivers. Operational improvements, including automation and AI deployment, further supported productivity and customer experience gains.

Oscar Health’s fourth quarter results drew a positive market response, despite revenue and earnings missing Wall Street expectations. Management attributed the miss to higher claims costs and increased risk adjustment payables, which reflected broader shifts in the Affordable Care Act (ACA) market. CEO Mark Bertolini cited the influx of Medicaid members and industry-wide changes in market morbidity as primary drivers, emphasizing that the company’s disciplined pricing and operational efficiency, including expanded AI deployment, helped offset some of these external headwinds. Bertolini stated, "Oscar embraced the change and positioned the company for strong top line growth and margin expansions in 2026."

Incyte’s fourth quarter was met with a negative market reaction, despite the company delivering revenue growth above Wall Street expectations. Management attributed this performance to strong commercial execution across its core products, notably Jakafi and Opsalura, as well as significant progress in the late-stage development pipeline. CEO William Meury highlighted that growth was broad-based, with almost every major product contributing, and commercial milestones were achieved across both established and newly launched therapies. However, higher research and development (R&D) spending and increased operating expenses weighed on margins, partially offsetting the top-line gains.

Red Rock Resorts delivered fourth-quarter results that exceeded Wall Street expectations, with management attributing the outperformance to robust visitation from both local and regional customers, as well as strong execution across its Las Vegas properties. Executive Vice President and CFO Stephen Cootey highlighted that gaming operations achieved their highest-ever fourth-quarter revenue and profitability, emphasizing that “robust visitation and net theoretical win across our local database, as well as our regional and national customers, helped drive the highest fourth quarter revenue and profitability for our gaming operations in the company’s history.”

Mirion’s fourth-quarter results were met with a negative market reaction, reflecting missed revenue and non-GAAP EPS expectations. Management attributed the softer top-line to challenging comparisons in its labs and research and RTQA (Radiation Therapy Quality Assurance) segments, as well as delays in government-related orders due to a prolonged shutdown. CEO Thomas Logan explained that strong order growth in nuclear power and nuclear medicine helped offset these headwinds, with Logan noting, “We booked record orders in 2025 totaling more than $1 billion, largely driven by the nuclear power market.”

Gilead Sciences ended the fourth quarter with results that exceeded Wall Street revenue expectations, yet the market responded negatively as investors focused on guidance and margin pressures. Management cited strong growth in its HIV business, including a 53% increase in the HIV prevention portfolio and rapid uptake of the new YES2GO injectable, as key drivers. CEO Daniel O’Day noted, “YES2GO is a transformative medicine that we expect to drive durable, steady, and long-term growth in our HIV prevention business.” However, continued headwinds in cell therapy and a notable drop in operating margin from last year contributed to investor concerns.

Upstart’s fourth quarter performance reflected robust year-over-year revenue growth, supported by expansion in its AI-powered lending platform and a return to profitability. Management attributed the results to a diversified mix of loan products and effective cost management across its channels. CFO Sanjay Datta noted that improvements in operating margin stemmed from operational efficiencies and increased adoption of Upstart’s credit models, which enhanced loan volume and platform utilization.

Angi’s fourth quarter results were marked by continued revenue declines and a significant miss relative to Wall Street expectations, prompting a notably negative market reaction. Management attributed the underperformance to persistent headwinds in both Google SEO and network channels, which have pressured the company’s top line for several quarters. CEO Jeffrey W. Kip acknowledged, “We’ve essentially said we don’t think we’re gonna make progress back,” referencing the company’s decision to adopt a more conservative outlook for these channels after repeated setbacks. The quarter also saw Angi double down on operational changes, including targeted cost reductions and a renewed focus on its proprietary business, which management claims is showing signs of customer repeat growth and improved customer experience metrics.

Rapid7’s fourth quarter results were met with a negative market reaction, reflecting investor concerns about the company’s stagnant sales and ongoing margin pressures. Management pointed to continued adoption of its managed detection and response (MDR) offerings and strategic investments in AI-enabled security operations as key factors supporting performance, but acknowledged that the shift in business mix and operational costs weighed on profitability. CEO Corey Thomas described the cybersecurity landscape as “a period of significant disruption,” noting that the company’s platform investments and go-to-market changes have not yet translated into accelerated growth.

CVS Health’s fourth quarter results reflected steady execution across its pharmacy, health services, and insurance businesses, with management crediting improvements in operational efficiency and customer experience as key drivers. CEO David Joyner highlighted the completed transition to a cost-based reimbursement model and successful integration of Rite Aid assets as important milestones, noting, “We have successfully completed the transition to a cost-based reimbursement. This was a significant step in creating a more transparent and stable pharmacy market.” The quarter also saw robust same-store sales growth, attributed to prescription volume and enhanced consumer engagement.

Mattel’s fourth quarter results failed to meet Wall Street’s expectations, leading to a significant negative reaction from the market. Management attributed the shortfall primarily to weaker-than-expected December sales in the U.S. and a more promotional retail environment, which pressured margins. CEO Ynon Kreiz explained, “growth in the US was less than anticipated, which impacted our full year results relative to expectations,” and described U.S. trade dynamics as a key challenge. International sales, however, performed in line with expectations, showing resilience across regions.

CTS Corporation’s fourth quarter was marked by a positive market response, driven by strong execution of its diversification strategy and momentum in non-transportation end markets. Management highlighted that diversified segments, particularly medical and industrial, delivered robust revenue gains, offsetting flat transportation sales. CEO Kieran O’Sullivan attributed performance to the company’s focus on advanced sensing technologies and operational improvements, stating, “Our diversified end markets were up 16% versus the prior year period.” Medical applications, especially in therapeutic and diagnostic devices, stood out as key contributors, while ongoing gross margin expansion reflected both product mix and process enhancements.

Datadog’s fourth quarter performance was met with a strong positive market reaction, reflecting broad-based customer adoption and increased multi-product usage. Management attributed this momentum to expanding demand from both enterprise clients and AI-native companies, while highlighting a record number of large deal wins. CEO Olivier Pomel pointed to rapid growth in core observability products and the company’s ongoing ability to consolidate disparate monitoring tools for large customers as critical factors supporting Datadog’s results. The company also noted stable retention rates, suggesting continued reliance on its platform.

Lyft’s fourth quarter was met with a strong negative market reaction, as the company’s revenue growth fell short of Wall Street’s expectations despite non-GAAP profit exceeding analyst forecasts. Management attributed the quarter’s underperformance to intensified promotional activity in the latter part of the quarter and the temporary impact of regulatory and legal reserve adjustments. CEO David Risher pointed to record active rider growth and the resilience of the core platform, emphasizing, "We are a very disciplined operator... focused on our top line and bottom line."

AIG’s fourth-quarter results drew a positive market response, as management cited disciplined underwriting, improved investment income, and strong execution on portfolio repositioning. CEO Peter Zaffino highlighted that international commercial growth, favorable reinsurance renewals, and ongoing expense reductions helped offset softness in North America property lines. Management also pointed to gains from new business, especially in international markets, and emphasized the benefits of a multi-year strategy targeting efficiency and portfolio optimization.

Insperity’s fourth quarter results missed Wall Street expectations, reflecting ongoing challenges in the small- and medium-sized business sector and elevated healthcare claims costs. Management attributed the performance to persistently weak client net hiring and higher benefits expenses, which squeezed gross profit margins. CEO Paul Sarvadi described 2025 as “exceptionally challenging,” citing external macroeconomic headwinds and an industry-wide rise in health plan costs as primary factors behind the quarter’s underwhelming financial outcome. Operating expense reductions and client retention efforts provided some stability, but top-line growth remained pressured.

Vestis’s fourth quarter results were met with a significantly positive market response, as investors focused on early signs of progress in the company’s business transformation efforts. Management pointed to improved operational execution, with CEO James Jay Barber highlighting a 7% increase in plant productivity and a 12% reduction in customer complaints. Notably, the company saw a 15% decline in average weekly lost business, viewed as leading indicators of greater efficiency and customer retention. Barber emphasized that these improvements are “not just statistics; they are leading indicators of operational efficiency and profitability.”

Aramark’s fourth-quarter results were well received by the market, reflecting strong underlying business momentum and broad-based revenue growth across its core segments. Management attributed the solid top-line performance to unprecedented client retention and successful new business wins, particularly in the healthcare, education, and corrections sectors in the U.S., as well as sports and mining internationally. CEO John J. Zillmer emphasized the importance of new contract launches like Penn Medicine and the company’s ability to maintain high retention rates, describing client loyalty as “the number one driver of our ultimate success.”

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.

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.

Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies.

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.

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 certainly contributed to services stocks’ recent underperformance - over the past six months, the industry’s 2.3% gain has fallen behind the S&P 500’s 6% rise.

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.

Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.