1 Small-Cap Stock with Promising Prospects and 2 We Ignore

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.

The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here is one small-cap stock that could be the next big thing and two best left ignored.

Two Small-Cap Stocks to Sell:

ThredUp (TDUP)

Market Cap: $779.6 million

Founded to revolutionize thrifting, ThredUp (NASDAQ:TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.

Why Are We Out on TDUP?

1. Sluggish trends in its orders suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Poor expense management has led to operating margin losses
3. Negative free cash flow raises questions about the return timeline for its investments

At $6.20 per share, ThredUp trades at 48.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TDUP doesn’t pass our bar.

Blink Charging (BLNK)

Market Cap: $97.83 million

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Are We Hesitant About BLNK?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 5.9% annually over the last two years
2. Cash burn makes us question whether it can achieve sustainable long-term growth
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Blink Charging is trading at $0.69 per share, or 0.6x forward price-to-sales. If you’re considering BLNK for your portfolio, see our FREE research report to learn more.

One Small-Cap Stock to Watch:

UMB Financial (UMBF)

Market Cap: $9.03 billion

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Could UMBF Be a Winner?

1. Market share has increased this cycle as its 17.8% annual net interest income growth over the last five years was exceptional
2. Net interest margin grew by 49 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.4% over the last five years outstripped its revenue performance

UMB Financial’s stock price of $118.93 implies a valuation ratio of 1.2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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.