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.
Regional banking company Glacier Bancorp (NYSE:GBCI) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 11.1% year on year to $222.6 million. Its non-GAAP profit of $0.48 per share was 4.4% above analysts’ consensus estimates.
Banks play a critical role in the financial system, providing everything from commercial loans to wealth management and payment processing services. But concerns about loan losses and tightening regulations have tempered enthusiasm,
and over the past six months, the banking industry has pulled back by 10.6%. This drawdown was especially disappointing since the S&P 500 held steady.
