Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Market Cap: $1.38 billion
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Are We Out on MMI?
Marcus & Millichap is trading at $35.01 per share, or 442.9x forward price-to-earnings. Read our free research report to see why you should think twice about including MMI in your portfolio, it’s free.
Market Cap: $2.42 billion
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.
Why Does VICR Worry Us?
At $55 per share, Vicor trades at 50.3x forward price-to-earnings. If you’re considering VICR for your portfolio, see our FREE research report to learn more.
Market Cap: $2.40 billion
Operating under the trade name TrinityRail, Trinity (NYSE:TRN) is a provider of railcar products and services in North America.
Why Are We Wary of TRN?
Trinity’s stock price of $29.38 implies a valuation ratio of 17.9x forward price-to-earnings. To fully understand why you should be careful with TRN, check out our full research report (it’s free).
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.
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