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. Keeping that in mind, here is one small-cap stock that could be the next big thing and two that could be down big.
Two Small-Cap Stocks to Sell:
Amtech (ASYS)
Market Cap: $110.9 million
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Should You Sell ASYS?
- Annual sales declines of 15.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Persistent operating margin losses suggest the business manages its expenses poorly
- Issuance of new shares over the last five years caused its earnings per share to fall by 17.8% annually while its revenue grew
Amtech is trading at $7.73 per share, or 59.9x forward P/E. Check out our free in-depth research report to learn more about why ASYS doesn’t pass our bar.
Robert Half (RHI)
Market Cap: $2.77 billion
With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.
Why Should You Dump RHI?
- Annual sales declines of 9.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Earnings per share fell by 11.6% annually over the last five years while its revenue was flat, showing each sale was less profitable
- Eroding returns on capital suggest its historical profit centers are aging
At $27.68 per share, Robert Half trades at 18.3x forward P/E. If you’re considering RHI for your portfolio, see our FREE research report to learn more.
One Small-Cap Stock to Watch:
BancFirst (BANF)
Market Cap: $3.76 billion
Operating as a "super community bank" with a decentralized management approach that emphasizes local responsiveness, BancFirst Corporation (NASDAQ: BANF) operates as a financial holding company providing commercial banking services to retail customers and small to medium-sized businesses primarily in Oklahoma and Texas.
Why Should BANF Be on Your Watchlist?
- 8.7% annual revenue growth over the last five years surpassed the sector average as its loans resonated with customers
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 16.9% over the last five years outstripped its revenue performance
- Annual tangible book value per share growth of 11.8% over the past five years was outstanding, reflecting strong capital accumulation this cycle
BancFirst’s stock price of $112.90 implies a valuation ratio of 2.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
