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 that could be down big.

Two Small-Cap Stocks to Sell:

Accel Entertainment (ACEL)

Market Cap: $996.2 million

Established in Illinois, Accel Entertainment (NYSE: ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues.

Why Does ACEL Worry Us?

1. Sluggish trends in its video gaming terminals sold suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Estimated sales growth of 6.5% for the next 12 months implies demand will slow from its two-year trend
3. Poor free cash flow margin of 4.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $11.90 per share, Accel Entertainment trades at 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than ACEL.

EPAM (EPAM)

Market Cap: $10.02 billion

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

Why Do We Think Twice About EPAM?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.3 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

EPAM is trading at $176.82 per share, or 16.3x forward P/E. To fully understand why you should be careful with EPAM, check out our full research report (it’s free).

One Small-Cap Stock to Buy:

BellRing Brands (BRBR)

Market Cap: $7.36 billion

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Do We Love BRBR?

1. Products are flying off the shelves as its unit sales averaged 20.8% growth over the past two years
2. Earnings per share grew by 28% annually over the last three years and trumped its peers
3. ROIC punches in at 48.9%, illustrating management’s expertise in identifying profitable investments

BellRing Brands’s stock price of $57.41 implies a valuation ratio of 24.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-micro-cap company Kadant (+351% 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