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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.

BJ's (BJRI)

Market Cap: $917.8 million

Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

Why Should You Sell BJRI?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Gross margin of 14.3% is below its competitors, leaving less money for marketing and promotions
3. Underwhelming 0.9% return on capital reflects management’s difficulties in finding profitable growth opportunities

BJ’s stock price of $41.50 implies a valuation ratio of 23.7x forward P/E. If you’re considering BJRI for your portfolio, see our FREE research report to learn more.

Great Lakes Dredge & Dock (GLDD)

Market Cap: $726.1 million

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ: GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Do We Pass on GLDD?

1. Muted 1.8% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
2. Free cash flow margin dropped by 16.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $10.70 per share, Great Lakes Dredge & Dock trades at 15.4x forward P/E. Check out our free in-depth research report to learn more about why GLDD doesn’t pass our bar.

NN (NNBR)

Market Cap: $95.85 million

Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

Why Should You Dump NNBR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.3% annually over the last five years
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Cash burn has widened over the last five years, making us question whether it can reliably generate shareholder value

NN is trading at $1.88 per share, or 285.3x forward P/E. Dive into our free research report to see why there are better opportunities than NNBR.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 176% over the last five years.

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.