Latest news with #smallcap
Yahoo
a day ago
- Business
- Yahoo
The Equity Group Provides Guidance on Mid-year Reporting and Strategic IR Planning
NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- The Equity Group Inc., leveraging the firm's 50+ years of expertise in Investor Relations, provides guidance and areas for consideration for small-cap public companies to address mid-year reporting and strategic IR planning in the current market environment. Devin Sullivan, Managing Director of The Equity Group, stated, 'The first six months of 2025 were some of the most eventful in recent memory. Managing geopolitical concerns, tariff uncertainty, supply chain disruption, interest rate ambiguity and market gyrations, among other issues, had the C-Suite and Board navigating a volatile global environment that required short-term solutions while remaining in pursuit of long-term growth and innovation. This dynamism has created an environment in which companies across many industries have been driven to re-examine various aspects of their businesses and, as importantly, adjust their expectations.' With quarterly results just around the corner for many smaller public companies, the C-Suite and their IR team should consider the following when preparing quarterly materials and commentary: Review current expectations of the company's Q2 and 2H results in the market. Assess the company's previous messaging, including prepared remarks and Q&A on the last few quarterly calls, and identify areas that need to be updated. Evaluate which aspects of the business have remained strong or even thrived. For those areas that have struggled, explain why and detail what is being done to remedy or mitigate any issues. Research peer commentary, with a particular focus on how they are addressing similar micro/macro challenges. Re-calibrate expectations, if necessary. Companies can offer a comprehensive assessment on where they currently stand, while re-orienting investors towards a proper understanding of the business, long-term opportunity and appropriate valuation. Click here to view the full mid-year reporting blog post. At the same time, it's important for public companies to refine their IR Plans for the balance of 2025 and early 2026. Some areas of focus that guide us: How did we perform towards our goals in the first half of the year? Should we refine our goals going forward? Is the investment thesis presented earlier in the year still on-point? What should we do to best communicate progress and define the opportunity landscape? Which analysts and investors should we speak with in terms of moving along existing dialogues, and sparking new ones? Which conferences will be most productive? Being intentional is essential – pursuing meetings with right-fit investors and analysts and avoiding unproductive conferences and other programs that waste management's time and company resources. Click here to view the mid-year strategic IR planning blog post. A thoughtful and thorough approach to IR during turbulent times builds investor trust and confidence in advance of clearer days ahead. About The Equity GroupFounded in 1974, The Equity Group is an investor relations and corporate communications firm headquartered in New York City. The firm builds investment stories for public and going-public micro through SMID-cap companies, introduces them to potential investors and sell-side analysts, and develops/manages best practices investor communications and engagement programs supported by trusted, expert advisory and customized market intel. Contact:Devin SullivanManaging DirectorThe Equity Group Inc.(212) 836-9608DSullivan@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Prediction: Small-Cap Stocks Will Outperform Large Caps Over the Next 3 Years. Here's Why.
Key Points Small-cap stocks have underperformed their large-cap counterparts for years. The valuation gap between small caps and large caps is the widest it's been since the 1990s. A falling-rate environment could disproportionately benefit small caps over the next few years. 10 stocks we like better than Vanguard Russell 2000 ETF › Small-cap stocks have lagged large caps for years. (Investors divide stocks based on the size of their market cap.) Over the past 10 years, the total return of the S&P 500 large-cap benchmark index has been about 150 percentage points greater than the small-cap benchmark Russell 2000. There are large performance gaps over the past five-year and three-year periods as well, and so far in 2025, large caps are outperforming small caps with total returns of 8% and 1%, respectively. As a result of this long-term outperformance, the valuation gap between large caps and small caps is the widest it has been since the late 1990s. The average S&P 500 component trades for a price-to-book ratio of 5.0, while the average P/B of Russell 2000 stocks is just 1.8. A falling-rate environment could help narrow the gap There are a few reasons why I think small-cap stocks are an excellent investment opportunity over the next few years. For example, investor appetite for speculation seems to be increasing recently. IPOs, M&A, and even SPACs are making a strong comeback. And this favors investment in smaller companies. However, the biggest reason I've been aggressively buying shares of the Vanguard Russell 2000 ETF (NASDAQ: VTWO) -- which invests in 2,000 stocks with a median market cap of $3 billion -- is because I believe we'll see interest rates fall significantly over the next three years, and small caps will be a big beneficiary. For one thing, small caps tend to be more debt-reliant than large caps, and lower interest rates make borrowing costs cheaper. Plus, as risk-free investment opportunities (like Treasuries) fall, more money will flow into the stock market as investors look for better returns, and this also generally favors small caps. Last but not least, the current regulatory-friendly environment could be a positive tailwind for all U.S. companies, but could be especially beneficial to smaller companies, removing roadblocks and allowing them to compete more effectively with their larger counterparts. Should you buy stock in Vanguard Russell 2000 ETF right now? Before you buy stock in Vanguard Russell 2000 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Russell 2000 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Matt Frankel has positions in Vanguard Russell 2000 ETF. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prediction: Small-Cap Stocks Will Outperform Large Caps Over the Next 3 Years. Here's Why. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Discover European Undervalued Small Caps With Insider Buying In July 2025
As the pan-European STOXX Europe 600 Index remains roughly flat amid ongoing U.S. and European trade discussions, small-cap stocks in Europe are navigating a mixed landscape with varying economic indicators. While Italy's FTSE MIB and the UK's FTSE 100 have shown modest gains, Germany's DAX and France's CAC 40 remain relatively unchanged, reflecting a cautious market sentiment. In this environment, identifying promising small-cap stocks often involves looking for those with strong fundamentals that can capitalize on economic trends such as expanding industrial output or favorable currency movements. Top 10 Undervalued Small Caps With Insider Buying In Europe Name PE PS Discount to Fair Value Value Rating Stelrad Group 13.0x 0.7x 38.62% ★★★★★☆ Instabank 10.2x 2.9x 23.94% ★★★★★☆ Yubico 32.7x 4.7x 11.25% ★★★★☆☆ CVS Group 44.6x 1.3x 39.67% ★★★★☆☆ Seeing Machines NA 2.9x 44.26% ★★★★☆☆ Troax Group 32.8x 2.9x 27.63% ★★★☆☆☆ A.G. BARR 19.7x 1.9x 45.56% ★★★☆☆☆ NOTE 21.1x 1.4x -8.42% ★★★☆☆☆ Lords Group Trading NA 0.2x -3.83% ★★★☆☆☆ FastPartner 17.3x 4.4x -37.81% ★★★☆☆☆ Click here to see the full list of 53 stocks from our Undervalued European Small Caps With Insider Buying screener. Let's explore several standout options from the results in the screener. A.G. BARR Simply Wall St Value Rating: ★★★☆☆☆ Overview: A.G. BARR is a UK-based company primarily engaged in the production and distribution of soft drinks, cocktail solutions, and other beverages, with a market capitalization of approximately £0.58 billion. Operations: The primary revenue stream comes from soft drinks, contributing significantly to the overall revenue of £420.4 million. The gross profit margin has shown a declining trend, reaching 39.08% in recent periods. Operating expenses have increased to £107.1 million, with sales and marketing accounting for a substantial portion at £51.1 million. PE: 19.7x A.G. BARR, known for Irn-Bru and Rubicon, is navigating a restructuring phase by seeking to sell Strathmore Mineral Water Company Ltd., aiming to boost profits. Despite relying on higher-risk external funding, they forecast a 10% annual earnings growth. Insider confidence is evident with recent share purchases in March 2025. The addition of Dr. Rohit Dhawan as Non-Executive Director promises strategic innovation through AI expertise from July 29, 2025, potentially enhancing their competitive edge in the consumer sector. Navigate through the intricacies of A.G. BARR with our comprehensive valuation report here. Gain insights into A.G. BARR's historical performance by reviewing our past performance report. Troax Group Simply Wall St Value Rating: ★★★☆☆☆ Overview: Troax Group specializes in manufacturing and supplying metal-based mesh panel solutions for industrial applications, with a market capitalization of approximately €2.02 billion. Operations: Troax Group's revenue primarily comes from its operations, with a notable gross profit margin of 37.37% as of June 2025. The company incurs costs mainly through COGS and operating expenses, including significant allocations to sales and marketing as well as general and administrative expenses. Over the observed periods, net income margin varied, reaching 8.72% in June 2025. PE: 32.8x Troax Group, a European company, is navigating through a challenging period with sales and net income declining in the first half of 2025 compared to the previous year. Despite this, they are taking strategic steps by consolidating operations to enhance efficiency and reduce costs. The company's commitment to growth is evident as earnings are expected to increase by 29% annually. Insider confidence remains high with recent share purchases indicating belief in future prospects despite current financial pressures. Delve into the full analysis valuation report here for a deeper understanding of Troax Group. Assess Troax Group's past performance with our detailed historical performance reports. Yubico Simply Wall St Value Rating: ★★★★☆☆ Overview: Yubico is a company specializing in security software and services, with a market capitalization of SEK 10.25 billion. Operations: The company's primary revenue stream is from Security Software & Services, with the latest reported revenue being SEK 2.45 billion. Over recent periods, there has been a notable increase in gross profit margin, reaching 81.57% by December 2024 and slightly adjusting to 80.96% by March 2025. The cost of goods sold (COGS) has remained relatively low compared to revenue, while operating expenses have seen an upward trend driven by sales & marketing and R&D expenses. PE: 32.7x Yubico, a company in the security technology industry, is expanding its YubiKey as a Service across the European Union, enhancing its presence in 199 locations globally. This expansion supports organizations' adoption of phishing-resistant multi-factor authentication. Despite a drop in net income from SEK 73.8 million to SEK 51.3 million year-over-year for Q1 2025, insider confidence is reflected by CEO Mattias Danielsson's purchase of 30,000 shares valued at approximately SEK 4.3 million in May 2025. Click to explore a detailed breakdown of our findings in Yubico's valuation report. Explore historical data to track Yubico's performance over time in our Past section. Next Steps Reveal the 53 hidden gems among our Undervalued European Small Caps With Insider Buying screener with a single click here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Looking For Alternative Opportunities? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LSE:BAG OM:TROAX and OM:YUBICO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
2 days ago
- Business
- Yahoo
1 Small-Cap Stock to Target This Week and 2 We Brush Off
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one small-cap stock that could amplify your portfolio's returns and two that could be down big. Two Small-Cap Stocks to Sell: Universal Display (OLED) Market Cap: $7.19 billion Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications. Why Are We Wary of OLED? Annual revenue growth of 4.3% over the last two years was below our standards for the semiconductor sector Estimated sales growth of 4.1% for the next 12 months is soft and implies weaker demand 5.7 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Universal Display's stock price of $151.22 implies a valuation ratio of 32.7x forward EV-to-EBITDA. To fully understand why you should be careful with OLED, check out our full research report (it's free). Ready Capital (RC) Market Cap: $717.8 million Operating as one of only 17 non-bank Small Business Lending Companies with preferred lender status from the SBA, Ready Capital (NYSE:RC) is a multi-strategy real estate finance company that originates, acquires, and services commercial real estate loans, small business loans, and other real estate investments. Why Do We Pass on RC? Forecasted net interest income decline of 10.2% for the upcoming 12 months implies demand will fall off a cliff Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 6.5% annually over the last five years Ready Capital is trading at $4.25 per share, or 0.4x forward P/B. Dive into our free research report to see why there are better opportunities than RC. One Small-Cap Stock to Buy: Palomar Holdings (PLMR) Market Cap: $3.73 billion Founded in 2013 to fill gaps in catastrophe insurance markets, Palomar Holdings (NASDAQ:PLMR) is a specialty insurance provider that offers property and casualty insurance products in underserved markets, with a focus on earthquake coverage. Why Will PLMR Outperform? Market share has increased this cycle as its 32.3% annual net premiums earned growth over the last two years was exceptional Impressive 35% annual book value per share growth over the last two years indicates it's building equity value this cycle Capital strength will likely rise over the next 12 months as its expected book value per share growth of 24.6% is robust At $139.56 per share, Palomar Holdings trades at 4.1x forward P/B. Is now the right time to buy? Find out in our full research report, it's free. High-Quality Stocks for All Market Conditions Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
2 days ago
- Business
- Yahoo
3 Top Undervalued Small Caps In The European Market With Insider Action
As the European market navigates a period of mixed performance, with the pan-European STOXX Europe 600 Index remaining relatively flat amidst ongoing trade discussions and economic adjustments, small-cap stocks present intriguing opportunities for investors. In this environment, identifying stocks that exhibit strong fundamentals and potential for growth can be particularly rewarding, especially when insider activity suggests confidence in their future prospects. Top 10 Undervalued Small Caps With Insider Buying In Europe Name PE PS Discount to Fair Value Value Rating Kitwave Group 13.0x 0.3x 45.16% ★★★★★☆ Instabank 10.2x 2.9x 24.22% ★★★★★☆ Yubico 32.7x 4.7x 11.32% ★★★★☆☆ Hoist Finance 8.9x 1.8x 18.02% ★★★★☆☆ CVS Group 45.1x 1.3x 38.97% ★★★★☆☆ Seeing Machines NA 2.9x 45.04% ★★★★☆☆ A.G. BARR 19.5x 1.8x 46.10% ★★★☆☆☆ NOTE 21.1x 1.4x -8.45% ★★★☆☆☆ FastPartner 17.0x 4.4x -35.94% ★★★☆☆☆ Karnov Group 233.1x 5.0x 27.51% ★★★☆☆☆ Click here to see the full list of 53 stocks from our Undervalued European Small Caps With Insider Buying screener. Let's dive into some prime choices out of from the screener. CVS Group Simply Wall St Value Rating: ★★★★☆☆ Overview: CVS Group operates in the veterinary services industry, providing services through its veterinary practices, laboratories, crematoria, and online retail business, with a market capitalization of approximately £1.32 billion. Operations: The primary revenue streams are Veterinary Practices, Laboratories, and Online Retail Business. The gross profit margin has shown variability over time, with a recent figure of 44.23%. Operating expenses have been significant, particularly in General & Administrative costs. PE: 45.1x CVS Group, a European small-cap company, is currently trading at levels that suggest it might be undervalued. Despite a decline in profit margins from 7.3% to 2.9% over the past year, there's insider confidence reflected in recent share purchases within the last six months. Earnings are projected to grow by 19% annually, although interest payments aren't fully covered by earnings due to reliance on external borrowing for funding. This financial structure presents both opportunities and challenges for future growth potential. Navigate through the intricacies of CVS Group with our comprehensive valuation report here. Explore historical data to track CVS Group's performance over time in our Past section. Alimak Group Simply Wall St Value Rating: ★★★★☆☆ Overview: Alimak Group specializes in providing vertical access solutions, including elevators and platforms for industrial and construction sectors, with a market cap of approximately SEK 5.18 billion. Operations: Alimak Group generates revenue primarily through its sales, with a notable gross profit margin trend peaking at 40.81% by mid-2025. The company's cost structure is significantly influenced by the cost of goods sold (COGS), which has shown an upward trajectory over time. Operating expenses, including sales and marketing, research and development, and general administrative costs, also play a crucial role in determining profitability. Net income margins have demonstrated variability but reached 10.11% in mid-2025, indicating improved efficiency in managing expenses relative to revenue growth. PE: 23.1x Alimak Group, a small European company, recently reported improved earnings with net income for Q2 2025 at SEK 184 million, up from SEK 143 million the previous year. Despite stable sales figures around SEK 1.7 billion for both quarters, the company's basic earnings per share rose to SEK 1.74 from SEK 1.35 year-on-year. Insider confidence is evident as Sven Törnkvist increased their stake by purchasing an additional 4,000 shares in June for approximately A$451,440. With earnings projected to grow annually by over 10%, Alimak's prospects appear promising despite its reliance on external borrowing as a funding source. Get an in-depth perspective on Alimak Group's performance by reading our valuation report here. Examine Alimak Group's past performance report to understand how it has performed in the past. BHG Group Simply Wall St Value Rating: ★★★★☆☆ Overview: BHG Group is a leading Nordic online retailer specializing in home improvement and furniture, with a market capitalization of approximately SEK 3.5 billion. Operations: BHG Group generates revenue primarily through sales, with recent figures showing SEK 10.25 billion for the quarter ending June 2025. The company's gross profit margin was noted at 17.12% during this period, indicating a focus on managing cost of goods sold relative to revenue. Operating expenses include significant allocations for general and administrative purposes, totaling SEK 1.09 billion in the same quarter. PE: -11.1x BHG Group, a European small cap, has shown promising financial recovery with net income reaching SEK 75.6 million in Q2 2025, reversing a loss from the previous year. Earnings per share improved to SEK 0.42 from a loss of SEK 0.57. Notably, insider confidence is evident as Martin Leo purchased shares worth over SEK 1 million recently, reflecting potential optimism about future growth prospects despite reliance on external borrowing for funding and anticipated earnings growth of nearly 88% annually. Take a closer look at BHG Group's potential here in our valuation report. Understand BHG Group's track record by examining our Past report. Key Takeaways Navigate through the entire inventory of 53 Undervalued European Small Caps With Insider Buying here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free. Seeking Other Investments? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:CVSG OM:ALIG and OM:BHG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
