2 Small-Cap Stocks for Long-Term Investors and 1 We Turn Down

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.

These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here are two small-cap stocks that could amplify your portfolio’s returns and one that may have trouble.

One Small-Cap Stock to Sell:

LiveRamp (RAMP)

Market Cap: $1.83 billion

Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.

Why Do We Think Twice About RAMP?

1. Customers were hesitant to make long-term commitments to its software as its 7.4% average ARR growth over the last year was sluggish
2. Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
3. Operating margin improvement of 3.6 percentage points over the last year demonstrates its ability to scale efficiently

LiveRamp is trading at $28.74 per share, or 2.3x forward price-to-sales. If you’re considering RAMP for your portfolio, see our FREE research report to learn more.

Two Small-Cap Stocks to Watch:

Montrose (MEG)

Market Cap: $839.6 million

Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.

Why Does MEG Stand Out?

1. Impressive 17.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 109% annually
3. Free cash flow margin increased by 6.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Montrose’s stock price of $23.76 implies a valuation ratio of 21.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

Zions Bancorporation (ZION)

Market Cap: $7.22 billion

Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ:ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.

Why Are We Fans of ZION?

1. Impressive 14.5% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Annual tangible book value per share growth of 22.5% over the past two years was outstanding, reflecting strong capital accumulation this cycle

At $49.05 per share, Zions Bancorporation trades at 1.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 6 Stocks for this week. 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-micro-cap company Kadant (+351% 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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