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.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, 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:
Concrete Pumping (BBCP)
Market Cap: $312.8 million
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Should You Sell BBCP?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales growth of 2% for the next 12 months suggests sluggish demand
- Sales were less profitable over the last two years as its earnings per share fell by 49.3% annually, worse than its revenue declines
Concrete Pumping is trading at $6.15 per share, or 51.8x forward P/E. Dive into our free research report to see why there are better opportunities than BBCP.
Two Small-Cap Stocks to Watch:
Lantheus (LNTH)
Market Cap: $4.38 billion
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Positive On LNTH?
- Annual revenue growth of 35.5% over the past five years was outstanding, reflecting market share gains this cycle
- Free cash flow margin increased by 19.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
Lantheus’s stock price of $66.02 implies a valuation ratio of 13.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Shift4 (FOUR)
Market Cap: $3.72 billion
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
Why Is FOUR a Good Business?
- Market share has increased this cycle as its 27.2% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 40.2% annually, topping its revenue gains
- ROE of 13% shows management can invest its resources competently
At $54.19 per share, Shift4 trades at 9.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
