Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Global Industrial (GIC)
Market Cap: $1.06 billion
Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.
Why Do We Steer Clear of GIC?
- Annual revenue growth of 4.9% over the last two years was below our standards for the industrials sector
- Earnings per share fell by 1.4% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $27.16 per share, Global Industrial trades at 14.3x forward P/E. Dive into our free research report to see why there are better opportunities than GIC.
REV Group (REVG)
Market Cap: $2.46 billion
Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.
Why Do We Think Twice About REVG?
- Annual sales declines of 3.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 12.2% reflects its high production costs
- Subpar operating margin of 3.5% constrains its ability to invest in process improvements or effectively respond to new competitive threats
REV Group’s stock price of $50.33 implies a valuation ratio of 15.5x forward P/E. If you’re considering REVG for your portfolio, see our FREE research report to learn more.
Comerica (CMA)
Market Cap: $9.97 billion
Founded in 1849 during the California Gold Rush era, Comerica (NYSE: CMA) is a financial services company that provides commercial banking, retail banking, and wealth management services to businesses and individuals.
Why Are We Out on CMA?
- Net interest income trends were unexciting over the last five years as its 3% annual growth was below the typical banking firm
- Sales were less profitable over the last two years as its earnings per share fell by 23% annually, worse than its revenue declines
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
Comerica is trading at $78.03 per share, or 1.4x forward P/B. Check out our free in-depth research report to learn more about why CMA doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
