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.
A number of stocks fell in the morning session after a surprisingly weak July jobs report and the announcement of sweeping new tariffs fueled fears of an economic slowdown and an impending interest rate cut.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
Regional banking company Independent Bank (NASDAQ:INDB) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 7.6% year on year to $183.2 million. Its non-GAAP profit of $1.25 per share was 3.3% above analysts’ consensus estimates.
Shares of regional banking company Independent Bank (NASDAQ:INDB) jumped 5.7% in the morning session after the company reported second-quarter financial results that beat Wall Street estimates for both adjusted earnings per share and revenue.
Regional banking company Independent Bank (NASDAQ:INDB) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 6.8% year on year to $181.8 million. Its GAAP profit of $1.20 per share was 2.4% below analysts’ consensus estimates.
Regional banking company Independent Bank (NASDAQ:INDB) announced better-than-expected revenue in Q1 CY2025, with sales up 6.5% year on year to $178 million. Its non-GAAP profit of $1.06 per share was 9% 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.
