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.
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 is one small-cap stock that could be the next 100 bagger and two that could be down big.
Two Small-Cap Stocks to Sell:
AGCO (AGCO)
Market Cap: $8.32 billion
With a history that features both organic growth and acquisitions, AGCO (NYSE: AGCO) designs, manufactures, and sells agricultural machinery and related technology.
Why Is AGCO Risky?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 13.9% annually over the last two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
AGCO is trading at $114.92 per share, or 17.7x forward P/E. Read our free research report to see why you should think twice about including AGCO in your portfolio.
BKV (BKV)
Market Cap: $2.80 billion
Operating a "closed-loop" model linking gas production to carbon capture, BKV (NYSE: BKV) produces natural gas from shale formations in Texas and Pennsylvania, selling it to utilities, industrial users, and exporters.
Why Is BKV Not Exciting?
- Modest revenue base of $1.36 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
BKV’s stock price of $25.64 implies a valuation ratio of 12.8x forward P/E. Check out our free in-depth research report to learn more about why BKV doesn’t pass our bar.
One Small-Cap Stock to Watch:
Casella Waste Systems (CWST)
Market Cap: $6.13 billion
Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.
Why Does CWST Catch Our Eye?
- Impressive 18.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Projected revenue growth of 13% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 24.2% annually over the last two years and trumped its peers
At $96.10 per share, Casella Waste Systems trades at 83.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
