1 Small-Cap Stock for Long-Term Investors and 2 We Ignore

Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.

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 is one small-cap stock that could be the next 100 bagger and two best left ignored.

Two Small-Cap Stocks to Sell:

Lindblad Expeditions (LIND)

Market Cap: $898 million

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Why Are We Out on LIND?

1. Lackluster 14.5% annual revenue growth over the last two years indicates the company is losing ground to competitors
2. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
3. Free cash flow margin is expected to remain in place over the coming year

At $16.25 per share, Lindblad Expeditions trades at 225x forward P/E. To fully understand why you should be careful with LIND, check out our full research report (it’s free).

Ziff Davis (ZD)

Market Cap: $1.55 billion

Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.

Why Is ZD Risky?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Sales over the last five years were less profitable as its earnings per share fell by 2.2% annually while its revenue was flat
3. 14.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Ziff Davis’s stock price of $39.31 implies a valuation ratio of 5.4x forward P/E. Check out our free in-depth research report to learn more about why ZD doesn’t pass our bar.

One Small-Cap Stock to Watch:

Barrett (BBSI)

Market Cap: $939.1 million

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Why Does BBSI Stand Out?

1. Solid 7.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Share repurchases over the last five years enabled its annual earnings per share growth of 10.9% to outpace its revenue gains
3. Industry-leading 54.6% return on capital demonstrates management’s skill in finding high-return investments

Barrett is trading at $36.65 per share, or 16.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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 5 Strong Momentum 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.