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 that could be down big.

Two Small-Cap Stocks to Sell:

Integra LifeSciences (IART)

Market Cap: $860.7 million

Founded in 1989 as a pioneer in regenerative medicine technology, Integra LifeSciences (NASDAQ: IART) develops and manufactures medical technologies for neurosurgery, wound care, and surgical reconstruction, including regenerative tissue products and surgical instruments.

Why Do We Think IART Will Underperform?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Free cash flow margin shrank by 19.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Integra LifeSciences is trading at $11.05 per share, or 4.6x forward P/E. If you’re considering IART for your portfolio, see our FREE research report to learn more.

Exponent (EXPO)

Market Cap: $3.42 billion

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Why Do We Think Twice About EXPO?

1. Annual revenue growth of 3.5% over the last two years was below our standards for the business services sector
2. Modest revenue base of $531.1 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Eroding returns on capital suggest its historical profit centers are aging

Exponent’s stock price of $68.57 implies a valuation ratio of 31.2x forward P/E. Dive into our free research report to see why there are better opportunities than EXPO.

One Small-Cap Stock to Watch:

Granite Construction (GVA)

Market Cap: $4.47 billion

Having played a role in the construction of the Hoover Dam, Granite Construction (NYSE: GVA) is a provider of infrastructure solutions for roads, bridges, and other projects.

Why Does GVA Stand Out?

1. Annual revenue growth of 12.2% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 43% outpaced its revenue gains
3. Free cash flow margin increased by 5.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $102.41 per share, Granite Construction trades at 17.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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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