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.
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 is one small-cap stock that could be the next big thing and two best left ignored.
Two small-cap stocks to sell:
United Bankshares (UBSI)
Market cap: $6.51 billion
With roots dating back to 1982 and a strong presence in the Mid-Atlantic region, United Bankshares (NASDAQ: UBSI) is a bank holding company that provides commercial and retail banking services through its United Bank subsidiary across multiple states.
Why Do We Steer Clear of UBSI?
- Net interest income trends were unexciting over the last five years as its 8.9% annual growth was below the typical banking firm
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.4% annually
- Muted 4.7% annual tangible book value per share growth over the last two years shows its capital generation lagged behind its banking peers
United Bankshares is trading at $48.38 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including UBSI in your portfolio.
Community Bank (CBU)
Market cap: $3.39 billion
Tracing its roots back to 1866 in upstate New York, Community Financial System (NYSE: CBU) is a financial holding company that provides banking, employee benefits, wealth management, and insurance services to retail, commercial, and municipal customers.
Why Does CBU Give Us Pause?
- Muted 8.2% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Annual earnings per share growth of 4.8% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- Annual tangible book value per share declines of 1.9% for the past five years show its capital management struggled during this cycle
Community Bank’s stock price of $64.70 implies a valuation ratio of 1.7x forward P/B. Dive into our free research report to see why there are better opportunities than CBU.
One small-cap stock to buy:
CLEAR Secure (YOU)
Market cap: $5.62 billion
Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE: YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.
Why Will YOU Outperform?
- Billings growth has averaged 24.4% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- YOU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $55.77 per share, CLEAR Secure trades at 4.9x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
High-quality stocks for all market conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
