2 Small-Cap Stocks to Target This Week and 1 Facing Challenges

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 be the next 100 baggers and one that could be down big.

One Small-Cap Stock to Sell:

Privia Health (PRVA)

Market Cap: $2.66 billion

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Why Does PRVA Worry Us?

1. Revenue base of $2.04 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
2. Poor free cash flow margin of 4.3% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Push for growth has led to negative returns on capital, signaling value destruction

Privia Health’s stock price of $21.61 implies a valuation ratio of 22.7x forward P/E. If you’re considering PRVA for your portfolio, see our FREE research report to learn more.

Two Small-Cap Stocks to Watch:

Powell (POWL)

Market Cap: $7.19 billion

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Why Will POWL Beat the Market?

1. Backlog has averaged 15.4% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 58.2% annually, topping its revenue gains
3. Free cash flow margin expanded by 22 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $593.90 per share, Powell trades at 33.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Concentrix (CNXC)

Market Cap: $2.14 billion

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ:CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Why Are We Fans of CNXC?

1. Annual revenue growth of 17.5% over the past two years was outstanding, reflecting market share gains this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Respectable free cash flow margin of 6% minimizes the need for external capital because it can finance growth internally

Concentrix is trading at $35.09 per share, or 3.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.