While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets.
But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
Over the past six months, Kraft Heinz’s stock price fell to $27.65. Shareholders have lost 5.7% of their capital, which is disappointing considering the S&P 500 has climbed by 5.2%. This may have investors wondering how to approach the situation.
Hardware products and merchandising solutions provider Hillman (NASDAQ:HLMN) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 6.2% year on year to $402.8 million. The company’s full-year revenue guidance of $1.56 billion at the midpoint came in 0.6% above analysts’ estimates. Its non-GAAP profit of $0.17 per share was 18.5% above analysts’ consensus estimates.
Hillman’s second quarter results were shaped by effective tariff mitigation strategies and execution on supply chain flexibility, which management credits for solid top and bottom line growth. CEO Jon Michael Adinolfi highlighted the company’s ability to “deliver orders on time and in full,” attributing performance to steady demand for repair and maintenance products, successful integration of the Intex acquisition, and a dual faucet sourcing strategy that reduced reliance on China. Management also pointed to strong results in its Hardware and Protective Solutions segment, as well as improved margins in Robotics and Digital Solutions, with Adinolfi noting, “This confirms our MinuteKey 3.5 strategy is working.”
Packaged foods company Kraft Heinz (NASDAQ:KHC) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 1.9% year on year to $6.35 billion. Its non-GAAP profit of $0.69 per share was 8.4% above analysts’ consensus estimates.
Kraft Heinz’s second quarter drew a negative market response, as investors focused on continued sales declines and a sizeable impairment charge despite the company beating Wall Street’s revenue and profit expectations. Management attributed the quarter’s results to ongoing investments in product quality, marketing, and manufacturing, though North American retail volume trends remained subdued. CEO Carlos Abrams-Rivera acknowledged that the company is “actively progressing” on a review of strategic options to unlock value but provided no new details. CFO Andre Maciel noted that a sustained share price decline triggered a $9.3 billion impairment, emphasizing it was not tied to operational performance.
Regarded as defensive investments, consumer staples stocks are generally safe bets in choppy markets. But they’re also double-edged swords as they often lag in booming conditions, and this pattern has persisted recently.
Over the past six months, the industry has recorded a loss of 4.3%, disappointing since the S&P 500 climbed 5.3%.
Omaha, NE – Berkshire Hathaway (NYSE: BRK.A, NYSE: BRK.B), the sprawling conglomerate led by legendary investor Warren Buffett, experienced a notable setback as its stock slipped nearly 3% following the announcement of a decline in operating income for the latest quarter. The downturn was significantly exacerbated by a substantial
