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.
Shares of leasing services company GATX (NYSE:GATX) jumped 2.3% in the afternoon session after Citigroup initiated coverage on the company with a "Buy" rating and a $201 price target.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. 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 21.8% for the sector - higher than the S&P 500’s 16% return.
The stocks in this article are all trading near their 52-week highs.
This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
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.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
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.
Leasing services company GATX (NYSE:GATX) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 11.3% year on year to $430.5 million. Its GAAP profit of $2.06 per share was 2.5% above analysts’ consensus estimates.
Leasing services company GATX (NYSE:GATX) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 11.3% year on year to $430.5 million. Its GAAP profit of $2.06 per share was 2.5% above analysts’ consensus estimates.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the vehicle parts distributors industry, including GATX (NYSE:GATX) and its peers.
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.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
Shares of leasing services company GATX (NYSE:GATX) jumped 10% in the afternoon session after it struck a $4.4 billion deal to buy about 105,000 railcars from Wells Fargo through a new joint venture with Brookfield Infrastructure Partners.
Wells Fargo to sell rail assets to joint venture for $4.4 billion, with GATX and Brookfield owning 30% and 70% respectively. Deal expected to close by Q1 2026.
