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. That said, here is one small-cap stock that could be the next 100 bagger and two best left ignored.

Two Small-Cap Stocks to Sell:

Dropbox (DBX)

Market Cap: $6.40 billion

Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ: DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.

Why Do We Steer Clear of DBX?

1. Flat billings over the last year suggest it may need to improve its products, pricing, or go-to-market strategy to reinvigorate demand
2. Projected sales for the next 12 months are flat and suggest demand will be subdued
3. Operating margin expansion of 6.1 percentage points over the last year shows the company optimized its expenses

Dropbox’s stock price of $22.56 implies a valuation ratio of 2.6x forward price-to-sales. Check out our free in-depth research report to learn more about why DBX doesn’t pass our bar.

Goodyear (GT)

Market Cap: $1.69 billion

With its iconic blimp floating above major sporting events since 1925, Goodyear (NASDAQ: GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.

Why Should You Sell GT?

1. Sales tumbled by 4.9% annually over the last two years, showing market trends are working against its favor during this cycle
2. Issuance of new shares over the last two years caused its earnings per share to fall by 56.8% annually, even worse than its revenue declines
3. Negative free cash flow raises questions about the return timeline for its investments

Goodyear is trading at $5.90 per share, or 0.1x forward price-to-sales. To fully understand why you should be careful with GT, check out our full research report (it’s free).

One Small-Cap Stock to Watch:

Astec (ASTE)

Market Cap: $1.12 billion

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ: ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Could ASTE Be a Winner?

1. Estimated revenue growth of 12.9% for the next 12 months implies demand will accelerate from its two-year trend
2. Operating margin improvement of 4.6 percentage points over the last five years demonstrates its ability to scale efficiently
3. Additional sales over the last two years increased its profitability as the 18.5% annual growth in its earnings per share outpaced its revenue

At $48.58 per share, Astec trades at 12.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.