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. The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are three small-cap stocks to swip ...

Financial Performance - European Wax Center, Inc. reported revenue of $55.91 million for the quarter ended June 2025, reflecting a year-over-year decline of 6.6% [1] - The EPS for the same period was $0.27, an increase from $0.15 a year ago, indicating a positive trend in earnings [1] - The reported revenue fell short of the Zacks Consensus Estimate of $56.93 million, resulting in a surprise of -1.79% [1] - The company achieved an EPS surprise of +42.11%, with the consensus EPS estimate being $0.19 [1] Key Metrics - Same-store sales were reported at 0.3%, outperforming the estimated -0.4% by four analysts [4] - System-wide sales reached $257.6 million, slightly above the average estimate of $257.31 million based on three analysts [4] - The ending center count was 1,059, exceeding the estimated 1,054 by two analysts [4] - Revenue from marketing fees was $8.11 million, surpassing the estimated $7.79 million, but representing a -0.4% change year-over-year [4] - Revenue from royalty fees was $14.28 million, compared to the estimated $14.02 million, reflecting a -1.3% change year-over-year [4] - Product sales revenue was $30.52 million, below the average estimate of $31.29 million, indicating a -10.1% year-over-year change [4] - Other revenue was reported at $3.01 million, slightly below the estimated $3.22 million, with a year-over-year change of -9.9% [4] Stock Performance - Shares of European Wax Center have returned -14.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - European Wax Center, Inc. (EWCZ) has shown a significant price increase of 51.5% over the past four weeks, with a mean price target of $6.50 indicating a potential upside of 27.7% from the current trading price of $5.09 [1] Price Targets and Analyst Consensus - The average price targets for EWCZ range from a low of $4 to a high of $15, with a standard deviation of $3.51, indicating variability in analyst estimates [2] - The lowest estimate suggests a decline of 21.4%, while the most optimistic estimate indicates a potential upside of 194.7% [2] - A low standard deviation among price targets suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Optimism - Analysts have shown strong agreement in revising EWCZ's earnings estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 127.1%, with four estimates moving higher and no negative revisions [12] - EWCZ holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as analysts' ability to set unbiased targets has been questioned [3][10] - Analysts often set overly optimistic price targets due to business incentives, which can lead to inflated estimates [8]

Core Insights - European Wax Center, Inc. (EWCZ) reported a revenue of $51.43 million for the quarter ended March 2025, reflecting a decrease of 0.9% year-over-year, while EPS increased to $0.22 from $0.13 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $49.4 million by 4.11%, and the EPS surpassed the consensus estimate of $0.05 by 340% [1] Financial Performance Metrics - Same-store sales increased by 0.7%, outperforming the average estimate of -0.6% from five analysts [4] - System-wide sales reached $225.90 million, exceeding the average estimate of $219.72 million from four analysts [4] - The ending center count was 1,062, slightly above the average estimate of 1,061 based on three analysts [4] - Revenue from marketing fees was $7.20 million, surpassing the average estimate of $6.78 million, representing a year-over-year increase of 1.5% [4] - Revenue from royalty fees was $12.43 million, slightly above the average estimate of $12.26 million, with a year-over-year change of -0.1% [4] - Revenue from product sales was $28.87 million, exceeding the average estimate of $27.69 million, reflecting a year-over-year decrease of 2.1% [4] - Other revenue amounted to $2.93 million, surpassing the average estimate of $2.78 million, with a year-over-year increase of 2.9% [4] Stock Performance - Shares of European Wax Center have returned +20% over the past month, compared to the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]