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. Keeping that in mind, here is one small-cap stock that could be the next 100 bagger and two that may have trouble.

Two Small-Cap Stocks to Sell:

Jamf (JAMF)

Market Cap: $1.73 billion

With its name playfully derived from "Just Another Management Framework," Jamf (NASDAQ: JAMF) provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.

Why Does JAMF Worry Us?

1. ARR growth averaged a weak 12.2% over the last year, suggesting that competition is pulling some attention away from its software
2. Estimated sales growth of 9.6% for the next 12 months implies demand will slow from its two-year trend
3. Persistent operating margin losses suggest the business manages its expenses poorly

Jamf is trading at $12.97 per share, or 2.3x forward price-to-sales. Read our free research report to see why you should think twice about including JAMF in your portfolio.

OceanFirst Financial (OCFC)

Market Cap: $1.09 billion

Tracing its roots back to 1902 when it began serving coastal New Jersey communities, OceanFirst Financial (NASDAQ: OCFC) operates as a regional bank holding company that provides commercial and consumer banking services primarily in New Jersey and surrounding metropolitan areas.

Why Should You Sell OCFC?

1. Annual sales declines of 5% for the past two years show its products and services struggled to connect with the market during this cycle
2. Muted 3.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
3. Annual earnings per share growth of 1.2% underperformed its revenue over the last five years, showing its incremental sales were less profitable

At $19.08 per share, OceanFirst Financial trades at 0.7x forward P/B. To fully understand why you should be careful with OCFC, check out our full research report (it’s free for active Edge members).

One Small-Cap Stock to Watch:

Clover Health (CLOV)

Market Cap: $1.29 billion

Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.

Why Should CLOV Be on Your Watchlist?

1. Average customer growth of 10.3% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
2. Earnings growth has trumped its peers over the last four years as its EPS has compounded at 65% annually
3. Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency

Clover Health’s stock price of $2.49 implies a valuation ratio of 35.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-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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