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.

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.

WillScot Mobile Mini (WSC)

Market Cap: $3.14 billion

Originally focusing on mobile offices for construction sites, WillScot (NASDAQ: WSC) provides ready-to-use temporary spaces, largely for longer-term lease.

Why Are We Cautious About WSC?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Sales are projected to tank by 4.8% over the next 12 months as demand evaporates further
3. Earnings per share have contracted by 12.5% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $16.98 per share, WillScot Mobile Mini trades at 15.6x forward P/E. Check out our free in-depth research report to learn more about why WSC doesn’t pass our bar.

JELD-WEN (JELD)

Market Cap: $182 million

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

Why Should You Sell JELD?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

JELD-WEN’s stock price of $2.17 implies a valuation ratio of 1.4x forward EV-to-EBITDA. To fully understand why you should be careful with JELD, check out our full research report (it’s free for active Edge members).

Enphase (ENPH)

Market Cap: $3.78 billion

The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.

Why Does ENPH Fall Short?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share have dipped by 22.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Free cash flow margin dropped by 9.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Enphase is trading at $28.90 per share, or 15x forward P/E. Check out our free in-depth research report to learn more about why ENPH doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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