Shares of auto services provider Monro (NASDAQ:MNRO) jumped 4.7% in the afternoon session after comments from a key Federal Reserve official boosted investor optimism for a potential interest rate cut.
A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
Shares of auto services provider Monro (NASDAQ:MNRO) jumped 5.9% in the afternoon session after the company declared a quarterly cash dividend and management outlined its strategic direction at an investor conference. The Board of Directors announced a quarterly cash dividend of $.28 per share. In addition to the dividend news, the company's CEO and CFO spoke at the Stephens Annual Investment Conference. During the discussion, they detailed efforts to improve performance, which included closing 145 underperforming stores. Management also noted that gross margins improved in the second quarter and that inventory levels were reduced by $21 million, signaling a focus on greater efficiency.
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.
What a time it’s been for Monro. In the past six months alone, the company’s stock price has increased by a massive 42.1%, reaching $18.16 per share. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.
Shares of auto services provider Monro (NASDAQ:MNRO) jumped 15.1% in the morning session after a report revealed that activist investor Carl Icahn acquired a significant stake in the company. The Icahn Group reported it purchased 639,473 shares at a price of $15.19 each, for a total of about $9.7 million. Following the transaction, Icahn's total disclosed ownership reached 4.4 million shares, which represented nearly a 15% stake in the automotive service and tire company. The involvement of a well-known activist investor often signaled to the market that strategic changes could be on the horizon. This news came after a period where Monro's performance had been challenged, as its previous quarter was marked by results that missed revenue expectations due to store closures and softer consumer demand.
Monro’s third quarter was marked by a significant negative market reaction following results that missed Wall Street’s revenue expectations. Management attributed the year-over-year sales decline to the closure of 145 underperforming stores and softer consumer demand, particularly among lower-income customers. CEO Peter Fitzsimmons cited progress in digital marketing and customer segmentation as partial offsets, noting, “We have now ramped our refined targeting to almost 600 stores, and we are encouraged to see that these stores are outperforming the balance of our store chain.” The company’s cost controls and improved merchandising, including enhanced vendor support and inventory management, helped maintain operating margins despite the revenue decline.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Monro (NASDAQ:MNRO) and its peers.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Advance Auto Parts (NYSE:AAP) and its peers.
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.
Shares of auto services provider Monro (NASDAQ:MNRO) fell 5.5% in the afternoon session after the stock's slide continued as it reported a 4.1% drop in quarterly sales and received a lower price target from a Wells Fargo analyst.
Auto services provider Monro (NASDAQ:MNRO) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 4.1% year on year to $288.9 million. Its non-GAAP profit of $0.21 per share was 16.7% above analysts’ consensus estimates.
Shares of auto services provider Monro (NASDAQ:MNRO) fell 16.7% in the afternoon session after the company reported third-quarter results that missed revenue expectations and pointed to a weak outlook.
Auto services provider Monro (NASDAQ:MNRO) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 4.1% year on year to $288.9 million. Its non-GAAP profit of $0.21 per share was 16.7% above analysts’ consensus estimates.
Monro (MNRO) Q2 FY2026 earnings beat EPS estimates but revenue missed forecasts. Comparable store sales rose 1.1% as the company focuses on profitability.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
A number of stocks jumped in the afternoon session after a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
