U.S. stock futures rose on Thursday after ending on a mixed note on Wednesday. Futures of major benchmark indices were higher, except for the small-cap gauge Russell 2000.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
RFID manufacturer Impinj (NASDAQ:PI) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 4.5% year on year to $97.89 million. On top of that, next quarter’s revenue guidance ($92.5 million at the midpoint) was surprisingly good and 7.4% above what analysts were expecting. Its non-GAAP profit of $0.80 per share was 13.6% above analysts’ consensus estimates.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
A number of stocks fell in the morning session after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike.
Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match.
The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns.
A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Over the last six months, Impinj’s shares have sunk to $117.97, producing a disappointing 17.9% loss - a stark contrast to the S&P 500’s 6.9% gain. This may have investors wondering how to approach the situation.
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.
