A number of stocks jumped in the afternoon session after markets continued to rally as investor optimism grew for a potential Federal Reserve interest rate cut in September. This optimism was largely fueled by a recent consumer price index report that showed inflation easing, along with public comments from Treasury Secretary Scott Bessent advocating for a significant 50-basis-point rate cut. The prospect of lower borrowing costs tends to boost rate-sensitive sectors like Business Services, as it can encourage companies to increase spending on consulting, IT projects, and staffing.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
IT infrastructure services provider Kyndryl (NYSE:KD) missed Wall Street’s revenue expectations in Q2 CY2025, with sales flat year on year at $3.74 billion. Next quarter’s revenue guidance of $3.81 billion underwhelmed, coming in 1.5% below analysts’ estimates. Its non-GAAP profit of $0.37 per share was in line with analysts’ consensus estimates.
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.
Shares of IT infrastructure services provider Kyndryl (NYSE:KD) fell 19.6% in the afternoon session after the company reported first-quarter revenue that fell short of Wall Street's expectations, overshadowing its in-line earnings. The IT services provider posted revenue of $3.74 billion, which missed the consensus estimate of approximately $3.83 billion. This sales disappointment occurred despite the company's adjusted earnings per share of $0.37 meeting analyst targets. The revenue figure also represented a 2.6% decline in constant currency, a metric that removes the effects of foreign exchange fluctuations. The market reaction suggested that investors prioritized the slowdown in sales growth over the company's stable profitability, even though Kyndryl reaffirmed its financial outlook for the fiscal year.
IT infrastructure services provider Kyndryl (NYSE:KD) fell short of the market’s revenue expectations in Q2 CY2025, with sales flat year on year at $3.74 billion. Next quarter’s revenue guidance of $3.81 billion underwhelmed, coming in 1.5% below analysts’ estimates. Its non-GAAP profit of $0.37 per share was in line with analysts’ consensus estimates.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
