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.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
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.
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.
Regional bank Westamerica Bancorporation (NASDAQ:WABC) beat Wall Street’s revenue expectations in Q2 CY2025, but sales fell by 12.6% year on year to $64.88 million. Its GAAP profit of $1.12 per share was 4.7% above analysts’ consensus estimates.
The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns.
A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Westamerica Bancorporation currently trades at $51.35 per share and has shown little upside over the past six months, posting a middling return of 1.1%. The stock also fell short of the S&P 500’s 6.2% gain during that period.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
There are many ways to measure high-quality stocks. One way for investors to find great dividend stocks is to focus on those with the longest histories of raising dividends.
