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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here is one small-cap stock that could be the next 100 bagger and two that may have trouble.
Two Small-Cap Stocks to Sell:
Gibraltar (ROCK)
Market Cap: $1.85 billion
Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Do We Think Twice About ROCK?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.4% annually over the last two years
- High input costs result in an inferior gross margin of 25.4% that must be offset through higher volumes
At $62.80 per share, Gibraltar trades at 12.6x forward P/E. Check out our free in-depth research report to learn more about why ROCK doesn’t pass our bar.
Landstar (LSTR)
Market Cap: $4.25 billion
Covering billions of miles throughout North America, Landstar (NASDAQ: LSTR) is a transportation company specializing in freight and last-mile delivery services.
Why Should You Sell LSTR?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 12.7% annually over the last two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Diminishing returns on capital suggest its earlier profit pools are drying up
Landstar is trading at $121.77 per share, or 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than LSTR.
One Small-Cap Stock to Watch:
DoubleVerify (DV)
Market Cap: $1.96 billion
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Do We Like DV?
- Annual revenue growth of 27.9% over the last five years was superb and indicates its market share is rising
- Software is difficult to replicate at scale and leads to a premier gross margin of 82.1%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
DoubleVerify’s stock price of $11.96 implies a valuation ratio of 2.5x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-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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