Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Since November 2020, the S&P 500 has delivered a total return of 85.8%. But one standout stock has more than doubled the market - over the past five years, Agilysys has surged 204% to $123.52 per share. Its momentum hasn’t stopped as it’s also gained 21.9% in the last six months thanks to its solid quarterly results, beating the S&P by 10.5%.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Agilysys delivered a strong third quarter, supported by a broad-based acceleration in subscription software sales and notable gains across its hospitality-focused product ecosystem. Management attributed the positive results to sustained improvements in its cloud-native solutions and efficiencies in project implementation, especially within key verticals like gaming casinos and foodservice management. CEO Ramesh Srinivasan emphasized that “the product ecosystem is getting better,” and highlighted significant contributions from newly modernized software modules and a more effective sales organization. The company also benefited from higher international sales and expanding customer adoption of its unified hospitality platform.
Shares of hospitality software provider Agilysys (NASDAQ:AGYS) jumped 24.1% in the morning session after the company reported strong third-quarter 2025 results that surpassed revenue and profit expectations, and it raised its full-year forecast.
Hospitality software provider Agilysys (NASDAQ:AGYS) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 16.1% year on year to $79.3 million. The company’s full-year revenue guidance of $316.5 million at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.40 per share was 4.3% above analysts’ consensus estimates.
Hospitality software provider Agilysys (NASDAQ:AGYS) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 16.1% year on year to $79.3 million. The company’s full-year revenue guidance of $316.5 million at the midpoint came in 1.8% above analysts’ estimates. Its non-GAAP profit of $0.40 per share was 4.3% above analysts’ consensus estimates.
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.
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.
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.
A number of stocks fell in the afternoon session after a significant downward revision in U.S. job creation data fueled concerns about a weakening labor market.
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 Veeva Systems (NYSE:VEEV) and the rest of the vertical software stocks fared in Q2.
Growth is oxygen.
But when it evaporates, the consequences can be severe - ask anyone who bought Cisco in the Dot-Com Bubble or newer investors who lived through the 2020 to 2022 COVID cycle.
