ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

3 Small-Cap Stocks with Competitive Advantages

POWL Cover Image

In today’s market, large companies dominate the landscape and grow their leads by acquiring smaller competitors - a trend that will accelerate with the Trump administration. However, some lesser-known players will continue thriving because they’ve carved durable niches for themselves.

Digging up these buried treasures isn’t easy, and that’s exactly why we created StockStory. Keeping that in mind, here are three hidden gems that could amplify your portfolio’s returns.

Powell (POWL)

Market Cap: $2.10 billion

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Are We Fans of POWL?

  1. Annual revenue growth of 34.8% over the past two years was outstanding, reflecting market share gains this cycle
  2. Operating margin expanded by 17.7 percentage points over the last five years as it scaled and became more efficient
  3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 209% annually

Powell’s stock price of $177.80 implies a valuation ratio of 11.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Primoris (PRIM)

Market Cap: $3.87 billion

Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Are We Positive On PRIM?

  1. Annual revenue growth of 16.2% over the last two years was superb and indicates its market share increased during this cycle
  2. Sales pipeline is in good shape as its backlog averaged 148% growth over the past two years
  3. Earnings per share have massively outperformed its peers over the last two years, increasing by 27% annually

At $71.51 per share, Primoris trades at 16x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Warby Parker (WRBY)

Market Cap: $2.44 billion

Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.

Why Does WRBY Stand Out?

  1. Bold push to open new stores demonstrates an ambitious strategy to establish itself in underpenetrated territories
  2. Earnings per share grew by 62.4% annually over the last three years, massively outpacing its peers
  3. Free cash flow margin jumped by 3.4 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Warby Parker is trading at $20.48 per share, or 53.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  230.82
-1.71 (-0.74%)
AAPL  271.86
-1.22 (-0.45%)
AMD  214.16
-1.18 (-0.55%)
BAC  55.00
-0.28 (-0.51%)
GOOG  313.80
-0.75 (-0.24%)
META  660.09
-5.86 (-0.88%)
MSFT  483.62
-3.86 (-0.79%)
NVDA  186.50
-1.04 (-0.55%)
ORCL  194.91
-2.30 (-1.17%)
TSLA  449.72
-4.71 (-1.04%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.