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. Keeping that in mind, here are two small-cap stocks that could be the next 100 baggers and one that could be down big.

One Small-Cap Stock to Sell:

REV Group (REVG)

Market Cap: $2.23 billion

Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.

Why Is REVG Not Exciting?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. High input costs result in an inferior gross margin of 12% that must be offset through higher volumes
3. Poor expense management has led to an operating margin of 3% that is below the industry average

REV Group is trading at $45.78 per share, or 16.4x forward P/E. To fully understand why you should be careful with REVG, check out our full research report (it’s free).

Two Small-Cap Stocks to Watch:

Upwork (UPWK)

Market Cap: $1.79 billion

Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.

Why Do We Like UPWK?

1. Monetization efforts are paying off as its average revenue per customer has grown by 8.3% annually over the last two years
2. Additional sales over the last three years increased its profitability as the 395% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin expanded by 27 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

Upwork’s stock price of $13.62 implies a valuation ratio of 10.2x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

Republic Bancorp (RBCAA)

Market Cap: $1.42 billion

With roots dating back to 1974 and operating across multiple states including Kentucky, Indiana, Florida, Ohio, and Tennessee, Republic Bancorp (NASDAQGS:RBCA.A) is a Kentucky-based financial holding company that operates a bank offering traditional banking, mortgage services, and specialized financial products.

Why Are We Positive On RBCAA?

1. Annual revenue growth of 10.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Differentiated product suite results in a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 5%
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 13.2% over the last two years outstripped its revenue performance

At $72.97 per share, Republic Bancorp trades at 1.3x forward P/B. Is now the time to initiate a position? See for yourself in our comprehensive 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 9 Market-Beating Stocks. 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 Exlservice (+354% 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