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.

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. That said, here is one small-cap stock that could be the next big thing and two that could be down big.

Two Small-Cap Stocks to Sell:

Monro (MNRO)

Market Cap: $646.3 million

Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.

Why Do We Pass on MNRO?

1. Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
3. Sales were less profitable over the last three years as its earnings per share fell by 30.4% annually, worse than its revenue declines

Monro is trading at $21.53 per share, or 37x forward P/E. Check out our free in-depth research report to learn more about why MNRO doesn’t pass our bar.

Glacier Bancorp (GBCI)

Market Cap: $5.91 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 Are We Hesitant About GBCI?

1. Annual net interest income growth of 8.2% over the last five years was below our standards for the banking sector
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.7% annually while its revenue grew
3. Muted 2.9% annual tangible book value per share growth over the last five years shows its capital generation lagged behind its banking peers

At $45.67 per share, Glacier Bancorp trades at 1.4x forward P/B. Read our free research report to see why you should think twice about including GBCI in your portfolio.

One Small-Cap Stock to Buy:

Remitly (RELY)

Market Cap: $3.52 billion

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Is RELY a Good Business?

1. Active Customers have grown by 29.2% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 108% outpaced its revenue gains
3. Free cash flow margin increased by 34.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Remitly’s stock price of $16.73 implies a valuation ratio of 9.3x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.