Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
Global car rental company Hertz (NASDAQ:HTZ) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 12.8% year on year to $1.81 billion. Its non-GAAP EPS of $1.12 per share was 14.6% below analysts’ consensus estimates.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Hertz (NASDAQ:HTZ) and its peers.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt.
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.
Hertz Global Holdings Inc. (NASDAQ: HTZ) shares are trading lower Tuesday after the company reported disappointing first-quarter financial results that missed both revenue and earnings expectations.
