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. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.

Academy Sports (ASO)

Market Cap: $2.84 billion

Founded in 1938 as a tire shop before expanding into fishing equipment, Academy Sports & Outdoor (NASDAQ: ASO) sells a broad selection of sporting goods but is still known for its outdoor activity merchandise.

Why Is ASO Not Exciting?

1. 4.2% annual revenue growth over the last five years was slower than its consumer retail peers
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.9 percentage points

Academy Sports’s stock price of $42.50 implies a valuation ratio of 6.5x forward P/E. If you’re considering ASO for your portfolio, see our FREE research report to learn more.

Papa John's (PZZA)

Market Cap: $1.52 billion

Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ: PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.

Why Should You Sell PZZA?

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. Estimated sales growth of 2.9% for the next 12 months implies demand will slow from its six-year trend
3. Challenging supply chain dynamics and bad unit economics are reflected in its low gross margin of 17.3%

At $45.01 per share, Papa John's trades at 22.9x forward P/E. To fully understand why you should be careful with PZZA, check out our full research report (it’s free).

Skechers (SKX)

Market Cap: $9.28 billion

Synonymous with "dad shoe", Skechers (NYSE: SKX) is a footwear company renowned for its comfortable, stylish, and affordable shoes for all ages.

Why Are We Out on SKX?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Estimated sales growth of 7.4% for the next 12 months implies demand will slow from its two-year trend
3. Low free cash flow margin of 4.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Skechers is trading at $62 per share, or 14.5x forward P/E. Dive into our free research report to see why there are better opportunities than SKX.

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.