Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here is one small-cap stock that could amplify your portfolio’s returns and two best left ignored.

Two Small-Cap Stocks to Sell:

FTI Consulting (FCN)

Market Cap: $5.33 billion

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

Why Do We Think Twice About FCN?

1. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 3.1 percentage points
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 7.6% annually
3. 6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

FTI Consulting is trading at $167.85 per share, or 20.5x forward P/E. Dive into our free research report to see why there are better opportunities than FCN.

Taboola (TBLA)

Market Cap: $976.2 million

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Why Are We Hesitant About TBLA?

1. Earnings growth over the last three years fell short of the peer group average as its EPS only increased by 2% annually
2. Free cash flow margin shrank by 2,406.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Negative returns on capital show that some of its growth strategies have backfired

At $3.33 per share, Taboola trades at 8.1x forward EV-to-EBITDA. If you’re considering TBLA for your portfolio, see our FREE research report to learn more.

One Small-Cap Stock to Buy:

F&G Annuities & Life (FG)

Market Cap: $4.60 billion

Founded in 1959 and serving approximately 677,000 policyholders who rely on its financial protection products, F&G Annuities & Life (NYSE: FG) provides fixed annuities, life insurance, and pension risk transfer solutions to retail and institutional clients.

Why Should You Buy FG?

1. Net premiums earned surged by 19.7% annually over the past two years, reflecting strong market share gains this cycle
2. Annual book value per share growth of 28.2% over the last two years was superb and indicates its capital strength increased during this cycle
3. Capital generation for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust book value per share growth of 50.3%

F&G Annuities & Life’s stock price of $34.17 implies a valuation ratio of 1x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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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