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?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- 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?
- Annual revenue growth of 6.9% over the last three years was below our standards for the consumer staples sector
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- 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?
- Below-average return on equity indicates management struggled to find compelling investment opportunities
- 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.
