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 two small-cap stocks that could amplify your portfolio’s returns and one that could be down big.
One Small-Cap Stock to Sell:
Bumble (BMBL)
Market Cap: $335.2 million
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ: BMBL) is a leading dating app built with women at the center.
Why Are We Cautious About BMBL?
- Intense competition is diverting traffic from its platform as its paying users fell by 6.5% annually
- Concerning trends in both user engagement and monetization suggest its platform’s efficacy is declining as its average revenue per buyer fell by 9.8% annually
- Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
Bumble is trading at $2.54 per share, or 2.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than BMBL.
Two Small-Cap Stocks to Watch:
Granite Construction (GVA)
Market Cap: $5.25 billion
Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.
Why Should You Buy GVA?
- Impressive 14.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 27.2%, which outperformed its revenue gains over the last two years
- Free cash flow margin grew by 14.6 percentage points over the last five years, giving the company more chips to play with
Granite Construction’s stock price of $119.91 implies a valuation ratio of 15.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Crane NXT (CXT)
Market Cap: $2.81 billion
Born from a corporate transformation completed in 2023, Crane NXT (NYSE: CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.
Why Are We Positive on CXT?
- Average backlog growth of 17.1% over the past two years shows it has a steady sales pipeline that will drive future orders
- Projected revenue growth of 10.2% for the next 12 months suggests its momentum from the last two years will persist
- ROIC of 12.6% shows management can invest its resources competently
At $48.77 per share, Crane NXT trades at 10.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
