2 Small-Cap Stocks Worth Investigating and 1 We Avoid

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. Keeping that in mind, here are two small-cap stocks that could amplify your portfolio’s returns and one that could be down big.

One Small-Cap Stock to Sell:

Concrete Pumping (BBCP)

Market Cap: $312.8 million

Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Why Should You Sell BBCP?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Projected sales growth of 2% for the next 12 months suggests sluggish demand
3. Sales were less profitable over the last two years as its earnings per share fell by 49.3% annually, worse than its revenue declines

Concrete Pumping is trading at $6.15 per share, or 51.8x forward P/E. Dive into our free research report to see why there are better opportunities than BBCP.

Two Small-Cap Stocks to Watch:

Lantheus (LNTH)

Market Cap: $4.38 billion

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Why Are We Positive On LNTH?

1. Annual revenue growth of 35.5% over the past five years was outstanding, reflecting market share gains this cycle
2. Free cash flow margin increased by 19.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Rising returns on capital show management is finding more attractive investment opportunities

Lantheus’s stock price of $66.02 implies a valuation ratio of 13.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Shift4 (FOUR)

Market Cap: $3.72 billion

Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE:FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.

Why Is FOUR a Good Business?

1. Market share has increased this cycle as its 27.2% annual revenue growth over the last two years was exceptional
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 40.2% annually, topping its revenue gains
3. ROE of 13% shows management can invest its resources competently

At $54.19 per share, Shift4 trades at 9.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.