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.
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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.
WillScot Mobile Mini (WSC)
Market Cap: $5.27 billion
Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.
Why Is WSC Not Exciting?
- Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical industrials company
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 3.4% annually
- Free cash flow margin dropped by 5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
At $28.54 per share, WillScot Mobile Mini trades at 17.4x forward P/E. If you’re considering WSC for your portfolio, see our FREE research report to learn more.
Vicor (VICR)
Market Cap: $2.09 billion
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ: VICR) provides electrical power conversion and delivery products for a range of industries.
Why Does VICR Worry Us?
- Sales tumbled by 5% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share decreased by more than its revenue over the last two years, partly because it diluted shareholders
- Waning returns on capital imply its previous profit engines are losing steam
Vicor’s stock price of $46.27 implies a valuation ratio of 28.8x forward P/E. Read our free research report to see why you should think twice about including VICR in your portfolio.
CoreCivic (CXW)
Market Cap: $2.37 billion
Originally founded in 1983 as the first private prison company in the United States, CoreCivic (NYSE: CXW) operates correctional facilities, detention centers, and residential reentry programs for government agencies across the United States.
Why Do We Think CXW Will Underperform?
- Demand for its offerings was relatively low as its number of average available beds has underwhelmed
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin shrank by 10.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
CoreCivic is trading at $21.68 per share, or 24.3x forward P/E. Dive into our free research report to see why there are better opportunities than CXW.
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 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
