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.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +1.5%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Dine Brands (NYSE:DIN) and the rest of the sit-down dining stocks fared in Q1.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Dine Brands Global (NYSE:DIN) shares rise after Q1 FY25 earnings despite a revenue miss. Sales grew 4.1% YoY to $214.78M, driven by the acquisition of 47 Applebee's locations. Adjusted EPS of $1.03 fell short of the $1.23 estimate.
Casual restaurant chain Dine Brands (NYSE:DIN) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 4.1% year on year to $214.8 million. Its non-GAAP profit of $1.03 per share was 16.7% below analysts’ consensus estimates.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Dine Brands has gotten torched over the last six months - since October 2024, its stock price has dropped 35.9% to $20.12 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
The Russell 2000 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.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Dine Brands (NYSE:DIN) and the rest of the sit-down dining stocks fared in Q4.
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.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at sit-down dining stocks, starting with Red Robin (NASDAQ:RRGB).
Restaurants increase convenience and give many people a place to unwind. But it’s not all sunshine and rainbows as they’re notoriously hard to run thanks to perishable ingredients, labor shortages, or volatile consumer spending.
Unfortunately, these factors have spelled trouble for the industry as it has shed 3.9% over the past six months. This performance was disappointing since the S&P 500 held steady.
Casual restaurant chain Dine Brands (NYSE:DIN) reported Q4 CY2024 results topping the market’s revenue expectations, but sales were flat year on year at $204.8 million. Its non-GAAP profit of $0.87 per share was 35.4% below analysts’ consensus estimates.
Wedbush analyst Nick Setyan downgraded Dine Brands from Outperform to Neutral, slashing the price target from $47 to $28. Despite efforts to boost same-store sales through value-focused strategies, results for Applebee's and IHOP remain underwhelming.
Since August 2024, Dine Brands has been in a holding pattern, posting a small loss of 4.3% while floating around $30.23. The stock also fell short of the S&P 500’s 15.2% gain during that period.
