3 Small-Cap Stocks with Questionable Fundamentals

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.

BrightView (BV)

Market Cap: $1.51 billion

An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.

Why Should You Sell BV?

1. Sales stagnated over the last two years and signal the need for new growth strategies
2. Earnings per share have contracted by 2.8% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Low returns on capital reflect management’s struggle to allocate funds effectively

BrightView is trading at $15.88 per share, or 17.9x forward P/E. If you’re considering BV for your portfolio, see our FREE research report to learn more.

Teleflex (TFX)

Market Cap: $5.02 billion

With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.

Why Does TFX Give Us Pause?

1. Annual revenue growth of 2.8% over the last two years was below our standards for the healthcare sector
2. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Teleflex’s stock price of $113.59 implies a valuation ratio of 7.8x forward P/E. To fully understand why you should be careful with TFX, check out our full research report (it’s free).

Peoples Bancorp (PEBO)

Market Cap: $1.11 billion

Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp (NASDAQ:PEBO) is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.

Why Does PEBO Worry Us?

1. Net interest income is projected to remain flat over the next 12 months as demand decelerates from its four-year trend
2. Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
3. High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations

At $31.75 per share, Peoples Bancorp trades at 1x forward P/B. Read our free research report to see why you should think twice about including PEBO in your portfolio.

Stocks We Like More

Trump’s April 2024 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 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-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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