A number of stocks jumped in the afternoon session after the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Financial services company Pathward Financial (NASDAQ:CASH) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 7.2% year on year to $195.9 million. Its non-GAAP profit of $1.81 per share was 8.4% above analysts’ consensus estimates.
A number of stocks fell in the morning session after a surprisingly weak July jobs report and the announcement of sweeping new tariffs fueled fears of an economic slowdown and an impending interest rate cut.
Financial services company Pathward Financial (NASDAQ:CASH) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 10.7% year on year to $195.8 million. Its GAAP profit of $1.81 per share was 8.4% above analysts’ consensus estimates.
Pathward Financial currently trades at $83.75 and has been a dream stock for shareholders. It’s returned 377% since July 2020, blowing past the S&P 500’s 96.5% gain. The company has also beaten the index over the past six months as its stock price is up 16% thanks to its solid quarterly results.
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.
Financial services company Pathward Financial (NASDAQ:CASH) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 7.8% year on year to $266.6 million. Its non-GAAP profit of $3.41 per share was 22.5% above analysts’ consensus estimates.
A cash-heavy balance sheet is often a sign of strength, but not always.
Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Companies Reporting Before The Bell • Freeport-McMoRan (NYSE:FCX) is estimated to report quarterly earnings at $0.22 per share on revenue of $5.86 billion.
