Shares of facility services provider ABM Industries (NYSE:ABM) fell 10.4% in the afternoon session after the company reported mixed first quarter 2025 (fiscal Q2) results as its full-year EPS guidance slightly missed.
Facility services provider ABM Industries (NYSE:ABM) exceeded Wall Street’s revenue expectations in Q1 CY2025 as sales rose 4.6% year on year to $2.11 billion. Its non-GAAP profit of $0.86 per share was in line with analysts’ consensus estimates.
Wall Street surged into rally mode during the final trading session of the week as better-than-expected jobs data helped ease fears of an economic slowdown.
Facility services provider ABM Industries (NYSE:ABM) beat Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.6% year on year to $2.11 billion. Its non-GAAP profit of $0.86 per share was in line with analysts’ consensus estimates.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
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.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
ABM trades at $47.19 per share and has stayed right on track with the overall market, losing 12.4% over the last six months while the S&P 500 is down 8.3%. This might have investors contemplating their next move.
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.
