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.
A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector.
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.
Enviri’s third quarter results saw a positive market reaction, despite a flat topline and a notable miss on adjusted profitability metrics. Management attributed the quarter’s mixed performance to continued strength in the Clean Earth business, which delivered margin expansion and healthy volume growth in hazardous waste, while Harsco Environmental and Rail segments faced operating headwinds. CEO F. Nicholas Grasberger highlighted that Clean Earth’s execution remains high, even amid distractions stemming from the ongoing strategic review and potential divestiture, and cited “healthy volume growth as a result” of new commercial strategies. The company also pointed to ongoing challenges in Rail due to subdued demand and project timing, which weighed on overall results.
Shares of steel and waste handling company Enviri (NYSE:NVRI)
jumped 4.3% in the afternoon session after the company reported mixed third-quarter results that included an earnings miss and lowered guidance, but also a potential plan to sell its strong-performing Clean Earth division.
Steel and waste handling company Enviri (NYSE:NVRI) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $574.8 million. Its non-GAAP loss of $0.08 per share was significantly below analysts’ consensus estimates.
Steel and waste handling company Enviri (NYSE:NVRI) met Wall Streets revenue expectations in Q3 CY2025, but sales were flat year on year at $574.8 million. Its non-GAAP loss of $0.08 per share was significantly below analysts’ consensus estimates.
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.
A number of stocks jumped in the afternoon session after positive news on corporate earnings, easing political and trade tensions, and optimism about future interest rate cuts all converged to lift investor sentiment.
A number of stocks jumped in the afternoon session after a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment.
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
Shares of steel and waste handling company Enviri (NYSE:NVRI)
jumped 3.5% in the afternoon session after a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. They are also bound to benefit from a friendlier regulatory environment with the Trump administration,
and this excitement has led to a six-month gain of 21.4% for the sector - higher than the S&P 500’s 14.9% return.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
Steel and waste handling company Enviri (NYSE:NVRI) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 7.8% year on year to $562.3 million. Its non-GAAP loss of $0.22 per share was 78.4% below analysts’ consensus estimates.
