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. That said, here is one small-cap stock that could be the next 100 bagger and two best left ignored.
Two Small-Cap Stocks to Sell:
Cushman & Wakefield (CWK)
Market Cap: $3.65 billion
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Are We Out on CWK?
- Flat sales over the last two years suggest it must innovate and find new ways to grow
- Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
- Earnings per share fell by 4.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
At $15.69 per share, Cushman & Wakefield trades at 12.3x forward P/E. To fully understand why you should be careful with CWK, check out our full research report (it’s free for active Edge members).
Amentum (AMTM)
Market Cap: $5.52 billion
With operations spanning approximately 80 countries and a workforce of specialized engineers and technical experts, Amentum Holdings (NYSE: AMTM) provides advanced engineering and technology solutions to U.S. government agencies, allied governments, and commercial enterprises across defense, energy, and space sectors.
Why Does AMTM Fall Short?
- Sizable revenue base leads to growth challenges as its 3.8% annual revenue increases over the last two years fell short of other business services companies
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 1.9% for the last four years
Amentum’s stock price of $22.33 implies a valuation ratio of 9.8x forward P/E. Check out our free in-depth research report to learn more about why AMTM doesn’t pass our bar.
One Small-Cap Stock to Buy:
Construction Partners (ROAD)
Market Cap: $6.48 billion
Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Should You Buy ROAD?
- Notable projected revenue growth of 30% for the next 12 months hints at market share gains
- Additional sales over the last two years increased its profitability as the 70.6% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 5.1 percentage points over the last five years, giving the company more chips to play with
Construction Partners is trading at $114.50 per share, or 41.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
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