Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
A number of stocks jumped in the afternoon session after markets continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.
A number of stocks fell in the afternoon session after a surprisingly weak U.S. jobs report was released, fueling concerns about a slowing economy. The U.S. economy added only 73,000 jobs, falling significantly short of economists' expectations, while figures for May and June were revised down, erasing 258,000 previously reported jobs. The professional and business services industry itself shed 14,000 jobs. This data points to a cooling labor market, fueling concerns of a slowing economy. A weaker economic outlook often leads to reduced corporate spending on key services like IT consulting and professional staffing, which directly impacts the sector's revenue and growth prospects. The report immediately increased investor expectations of an interest rate cut by the Federal Reserve.
Concentrix trades at $59 per share and has stayed right on track with the overall market, gaining 9.3% over the last six months. At the same time, the S&P 500 has returned 5.8%.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
Shares of customer experience solutions provider Concentrix (NASDAQ:CNXC) fell 7.5% in the morning session after the company reported mixed second-quarter 2025 results, with a significant drop in profitability overshadowing a slight revenue beat.
Customer experience solutions provider Concentrix (NASDAQ:CNXC) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 1.5% year on year to $2.42 billion. Guidance for next quarter’s revenue was optimistic at $2.46 billion at the midpoint, 2.3% above analysts’ estimates. Its non-GAAP profit of $2.70 per share was 1.7% below analysts’ consensus estimates.
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.
