Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, 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:

DistributionNOW (DNOW)

Market Cap: $1.54 billion

Spun off from National Oilwell Varco, DistributionNOW (NYSE: DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.

Why Do We Steer Clear of DNOW?

1. Sales tumbled by 2.8% annually over the last five years, showing market trends are working against its favor during this cycle
2. Earnings per share have contracted by 6.3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Free cash flow margin dropped by 4.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $14.60 per share, DistributionNOW trades at 10.1x forward EV-to-EBITDA. To fully understand why you should be careful with DNOW, check out our full research report (it’s free).

Glacier Bancorp (GBCI)

Market Cap: $4.87 billion

Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.

Why Does GBCI Fall Short?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.5% annually over the last two years
2. 4% annual net interest income growth over the last four years was slower than its bank peers
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

Glacier Bancorp’s stock price of $42.86 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than GBCI.

One Small-Cap Stock to Watch:

Huron (HURN)

Market Cap: $2.13 billion

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Does HURN Stand Out?

1. Impressive 13.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Adjusted operating margin profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Share buybacks catapulted its annual earnings per share growth to 34.6%, which outperformed its revenue gains over the last two years

Huron is trading at $133.08 per share, or 18.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 5 Growth Stocks for this month. 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 Comfort Systems (+782% 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