2 Small-Cap Stocks to Target This Week and 1 We Brush Off

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 be the next big thing and one that may have trouble.

One Small-Cap Stock to Sell:

TFS Financial (TFSL)

Market Cap: $3.98 billion

Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ:TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.

Why Should You Dump TFSL?

1. Annual net interest income growth of 3.9% over the last five years was below our standards for the banking sector
2. Inferior net interest margin of 1.7% means it must compensate for lower profitability through increased loan originations
3. Earnings per share lagged its peers over the last five years as they only grew by 2% annually

TFS Financial is trading at $14.28 per share, or 2.1x forward P/B. Dive into our free research report to see why there are better opportunities than TFSL.

Two Small-Cap Stocks to Watch:

Mirion (MIR)

Market Cap: $5.15 billion

With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE:MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.

Why Do We Watch MIR?

1. Market share has increased this cycle as its 11.8% annual revenue growth over the last five years was exceptional
2. Operating margin improvement of 10.4 percentage points over the last five years demonstrates its ability to scale efficiently
3. Free cash flow margin expanded by 11.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $21.45 per share, Mirion trades at 37.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Molina Healthcare (MOH)

Market Cap: $7.64 billion

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Do We Like MOH?

1. Impressive 18.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Economies of scale give it fixed cost leverage when sales grow as well as negotiating power over membership pricing and reimbursement rates

Molina Healthcare’s stock price of $149.01 implies a valuation ratio of 22.9x forward P/E. Is now a good time to buy? 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 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.