Why Capstone Holding (CAPS) Skyrocketed on Monday?

We recently compiled a list of the 10 Small Firms Kick Off Monday with Strong Gains. In this article, we are going to take a look at where Capstone Holding Corp. Common Stock (NASDAQ:CAPS) stands against the other stocks with strong gains.

Wall Street’s main indices kicked off Monday’s trading with a strong finish, ending in the green territory as investors hoped President Donald Trump would dial back on his wide-ranging tariff plans to allow the US to skirt an economic slowdown.

The Nasdaq posted the largest gain, up 2.27 percent, followed by the S&P 500, up 1.76 percent, and the Dow Jones, at 1.42 percent.

Ten companies under the micro- and small-cap sectors mirrored the broader market optimism, registering double- to triple-digit gains at intra-day trading. In this article, let us explore the reasons behind their gains.

To come up with the list, we considered only the stocks with the highest gains in terms of percentage change.

A scientist waving a test tube in the air, excitedly celebrating a discovery in the lab.

Capstone Holding Corp. Common Stock (NASDAQ:CAPS)

Capstone Holding Corp. Common Stock (NASDAQ:CAPS) surged by 143 percent at intra-day trading on Monday before early profit-taking dragged the company to finish the day just up by 61.05 percent at $2.77 each.

Trading in Capstone (NASDAQ:CAPS) was largely fueled by its optimistic business outlook, shunning threats of the global trade war.

Last week, CAPS CEO Matt Liman announced that the company expects “2025 to be a solid year” on the back of lower interest rates, remedied housing shortage, and remodeled expenditures.

While it acknowledged the higher cost of products imported from China, Capstone (NASDAQ:CAPS) said that it is benefitting from a 15 to 25-percent decline in the shipping prices between China and the US.

“There is a fair amount of freight in our products and only the product cost is subject to tariff. So a 10 percent tariff typically will create a price increase to the customer of 3 percent-4 percent. With a 15 percent to 25 percent decline in container pricing, the tariffs as currently constructed are offset by decreased shipping costs,” said Kevin Grotke, CEO of CAPS’ Instone operating business.

Overall, CAPS ranks 4th on our list of  small firms kick off Monday with strong gains. While we acknowledge the potential of CAPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CAPS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.