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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.

SiteOne (SITE)

Market Cap: $5.97 billion

Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE: SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.

Why Does SITE Give Us Pause?

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. Earnings per share fell by 4.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Eroding returns on capital suggest its historical profit centers are aging

At $133.97 per share, SiteOne trades at 30.4x forward P/E. If you’re considering SITE for your portfolio, see our FREE research report to learn more.

Matrix Service (MTRX)

Market Cap: $330.5 million

Founded in Oklahoma, Matrix Service (NASDAQ: MTRX) provides engineering, fabrication, construction, and maintenance services primarily to the energy and industrial markets.

Why Are We Wary of MTRX?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last five years
2. Gross margin of 3.8% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Issuance of new shares over the last five years caused its earnings per share to fall by 66.3% annually, even worse than its revenue declines

Matrix Service’s stock price of $11.75 implies a valuation ratio of 21.4x forward P/E. To fully understand why you should be careful with MTRX, check out our full research report (it’s free for active Edge members).

TriCo Bancshares (TCBK)

Market Cap: $1.61 billion

Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ: TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.

Why Are We Cautious About TCBK?

1. Net interest income trends were unexciting over the last five years as its 6% annual growth was below the typical banking firm
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 17 basis points (100 basis points = 1 percentage point)
3. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable

TriCo Bancshares is trading at $49.43 per share, or 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than TCBK.

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 5 Growth Stocks for this month. 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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