Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
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 three small-cap stocks to swipe left on and some alternatives you should look into instead.
Market Cap: $288.6 million
Founded by healthcare professionals Tom Burton and Steve Barlow in 2008, Health Catalyst (NASDAQ:HCAT) provides data and analytics technology to healthcare organizations, enabling them to improve care and lower costs.
Why Are We Cautious About HCAT?
Health Catalyst is trading at $4.13 per share, or 0.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than HCAT.
Market Cap: $4.06 billion
Founded in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.
Why Does PYCR Fall Short?
Paycor’s stock price of $22.37 implies a valuation ratio of 5.2x forward price-to-sales. If you’re considering PYCR for your portfolio, see our FREE research report to learn more.
Market Cap: $4.31 billion
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Why Do We Pass on SEE?
At $29.72 per share, Sealed Air trades at 9.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why SEE doesn’t pass our bar.
The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.
Get started by checking out 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
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