3 Small-Cap Stocks We Find Risky

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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.

Post (POST)

Market Cap: $5.05 billion

Founded in 1895, Post (NYSE:POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.

Why Is POST Not Exciting?

1. Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Post is trading at $105.64 per share, or 14.3x forward P/E. To fully understand why you should be careful with POST, check out our full research report (it’s free).

Simply Good Foods (SMPL)

Market Cap: $1.52 billion

Best known for its Atkins brand that was inspired by the popular diet of the same name, Simply Good Foods (NASDAQ:SMPL) is a packaged food company whose offerings help customers achieve their healthy eating or weight loss goals.

Why Are We Cautious About SMPL?

1. Annual revenue growth of 6.9% over the last three years was below our standards for the consumer staples sector
2. Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
3. Efficiency has decreased over the last year as its operating margin fell by 5.7 percentage points

Simply Good Foods’s stock price of $16.41 implies a valuation ratio of 8x forward P/E. Check out our free in-depth research report to learn more about why SMPL doesn’t pass our bar.

HA Sustainable Infrastructure Capital (HASI)

Market Cap: $4.33 billion

With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE:HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.

Why Does HASI Give Us Pause?

1. Below-average return on equity indicates management struggled to find compelling investment opportunities
2. 27× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $36.45 per share, HA Sustainable Infrastructure Capital trades at 12.6x forward P/E. Read our free research report to see why you should think twice about including HASI in your portfolio.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

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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.