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. That said, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Bark (BARK)
Market Cap: $78.21 million
Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.
Why Is BARK Risky?
- Annual revenue growth of 5.2% over the last five years was below our standards for the consumer discretionary sector
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Bark is trading at $9.10 per share, or 25.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BARK doesn’t pass our bar.
ePlus (PLUS)
Market Cap: $2.36 billion
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Does PLUS Fall Short?
- Muted 4.4% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $91.24 per share, ePlus trades at 16.7x forward P/E. If you’re considering PLUS for your portfolio, see our FREE research report to learn more.
First Hawaiian Bank (FHB)
Market Cap: $3.33 billion
Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian (NASDAQ: FHB) operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.
Why Should You Sell FHB?
- Net interest income trends were unexciting over the last five years as its 5% annual growth was below the typical banking firm
- Net interest margin of 3.1% reflects its high servicing and capital costs
- Annual tangible book value per share growth of 2.3% over the last five years was below our standards for the banking sector
First Hawaiian Bank’s stock price of $27.34 implies a valuation ratio of 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than FHB.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
