Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

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 is one small-cap stock that could be the next big thing and two that may have trouble.

Two Small-Cap Stocks to Sell:

ZoomInfo (ZI)

Market Cap: $3.43 billion

Operating a platform it calls "RevOS" - short for Revenue Operating System - ZoomInfo (NASDAQ: ZI) provides sales, marketing, and recruiting teams with business intelligence and analytics to identify prospects and deliver targeted outreach.

Why Are We Hesitant About ZI?

1. Billings didn’t grow over the last year, suggesting the company struggled to sell its software and might have to lower prices to stimulate growth
2. Prolonged sales cycles signal certain parts of its software must be customized for its large enterprise clients, impeding customer growth
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 10.3 percentage points

At $10.28 per share, ZoomInfo trades at 2.9x forward price-to-sales. If you’re considering ZI for your portfolio, see our FREE research report to learn more.

F.N.B. Corporation (FNB)

Market Cap: $6.03 billion

Tracing its roots back to 1864 during the Civil War era, F.N.B. Corporation (NYSE: FNB) is a diversified financial services holding company that provides banking, wealth management, and insurance services to consumers and businesses across seven states and Washington, D.C.

Why Does FNB Worry Us?

1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
2. Net interest margin shrank by 27.3 basis points (100 basis points = 1 percentage point) over the last two years, suggesting the profitability of its loan book is decreasing or the market is becoming more competitive
3. Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 7% annually

F.N.B. Corporation’s stock price of $16.79 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why FNB doesn’t pass our bar.

One Small-Cap Stock to Watch:

PJT (PJT)

Market Cap: $4.42 billion

Spun off from Blackstone in 2015 and founded by former Morgan Stanley executive Paul J. Taubman, PJT Partners (NYSE: PJT) is an advisory-focused investment bank that provides strategic advice, restructuring services, and fundraising solutions to corporations, boards, and investment firms.

Why Do We Watch PJT?

1. Annual revenue growth of 18.5% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 23.2% annually, topping its revenue gains
3. ROE punches in at 27.3%, illustrating management’s expertise in identifying profitable investments

PJT is trading at $183 per share, or 26.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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