Cathie Wood and Warren Buffett have very different investment philosophies, but each owns a particular "Magnificent Seven" stock that looks primed to thrive.
NEW YORK, March 31, 2025 – Tesla, Inc. (NASDAQ: TSLA) saw its stock price tumble by 5.41% in early trading today following reports of a potential acquisition of X, the social media platform owned by Elon Musk’s xAI. As of 9:30:00 AM EDT, Tesla shares were trading
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.
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.
Semiconductors are the silicon backbone of the digital revolution. Still, they’re subject to swings in the broader economy because customers often stockpile chips ahead of demand, and investors seem to believe that inventory levels are correcting -
over the past six months, the industry has shed 21.3%. This drawdown was significantly worse than the S&P 500’s 4% loss.
The performance of consumer discretionary businesses is closely linked to economic cycles. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 8% over the past six months. This performance was worse than the S&P 500’s 4% loss.
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.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry has tumbled by 11.1%. This drop was worse than the S&P 500’s 4% loss.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns -
over the past six months, healthcare stocks have collectively shed 11.1%. This drop was worse than the S&P 500’s 4% decline.
Semiconductors are the core infrastructure powering the Information Age. Still, they’re subject to swings in the broader economy because customers often stockpile chips ahead of demand, and investors seem to believe that inventory levels are correcting -
over the past six months, the industry has shed 21.3%. This drawdown was significantly worse than the S&P 500’s 4% fall.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
