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.
Over the last six months, Driven Brands’s shares have sunk to $14.61, producing a disappointing 18.4% loss - a stark contrast to the S&P 500’s 14.7% gain. This might have investors contemplating their next move.
A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
A deep-value fund just disclosed unwinding three major leisure positions last quarter—raising real questions about where it sees mispricing and where it no longer does.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Shares of automotive services company Driven Brands (NASDAQ:DRVN) jumped 8% in the morning session after the company reported third-quarter results that beat analyst expectations on profit and raised its full-year earnings forecast. The company's adjusted earnings per share came in at $0.34, topping Wall Street's estimate of $0.30. While revenue of $535.7 million marked a 9.5% year-on-year decline, the figure was in line with analyst consensus. Adding to the positive news, management raised its full-year adjusted EPS guidance to $1.26 at the midpoint. The results were also supported by a 2.8% year-on-year increase in same-store sales. The stronger-than-expected profitability and improved earnings outlook appeared to overshadow the revenue decline, driving the stock higher.
Automotive services company Driven Brands (NASDAQ:DRVN) met Wall Streets revenue expectations in Q3 CY2025, but sales fell by 9.5% year on year to $535.7 million. On the other hand, the company’s full-year revenue guidance of $2.11 billion at the midpoint came in 0.6% below analysts’ estimates. Its non-GAAP profit of $0.34 per share was 13.6% above analysts’ consensus estimates.
Driven Brands (DRVN) beat Q3 2025 profit estimates with EPS of $0.34. Revenue of $535.7M slightly missed forecasts. The stock rose on strong earnings and improved leverage.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. These firms have helped their customers unlock huge efficiencies,
so it’s no surprise the industry has posted a 24.6% gain over the past six months, nearly mirrorring the S&P 500.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
A number of stocks fell in the afternoon session after new trade tensions and disappointing earnings from major tech companies weighed heavily on investor sentiment.
Driven Brands currently trades at $16.17 per share and has shown little upside over the past six months, posting a middling return of 2%. The stock also fell short of the S&P 500’s 27.3% gain during that period.
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.
