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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one small-cap stock that could be the next 100 bagger and two that may have trouble.

Two Small-Cap Stocks to Sell:

Envista (NVST)

Market Cap: $3.35 billion

Uniting more than 30 trusted brands including Nobel Biocare, Ormco, and DEXIS under one corporate umbrella, Envista Holdings (NYSE: NVST) is a global dental products company that provides equipment, consumables, and specialized technologies for dental professionals.

Why Should You Dump NVST?

1. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
2. Earnings per share fell by 13.9% annually over the last five years while its revenue was flat, showing each sale was less profitable
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Envista is trading at $19.75 per share, or 19.3x forward P/E. To fully understand why you should be careful with NVST, check out our full research report (it’s free).

CONMED (CNMD)

Market Cap: $1.52 billion

With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.

Why Does CNMD Worry Us?

1. Muted 6.7% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
2. Revenue base of $1.32 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. Underwhelming 5% return on capital reflects management’s difficulties in finding profitable growth opportunities

CONMED’s stock price of $49.25 implies a valuation ratio of 11x forward P/E. Check out our free in-depth research report to learn more about why CNMD doesn’t pass our bar.

One Small-Cap Stock to Watch:

Astronics (ATRO)

Market Cap: $1.23 billion

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Why Do We Like ATRO?

1. Impressive 19.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 81.3% annually, topping its revenue gains
3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

At $34.32 per share, Astronics trades at 22.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 Kadant (+351% 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

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