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. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Lucky Strike (LUCK)
Market Cap: $1.11 billion
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Why Should You Dump LUCK?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- 8× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Lucky Strike is trading at $8.11 per share, or 53.9x forward P/E. Dive into our free research report to see why there are better opportunities than LUCK.
Haemonetics (HAE)
Market Cap: $2.65 billion
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE: HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Does HAE Give Us Pause?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Subscale operations are evident in its revenue base of $1.33 billion, meaning it has fewer distribution channels than its larger rivals
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $57.20 per share, Haemonetics trades at 10.9x forward P/E. If you’re considering HAE for your portfolio, see our FREE research report to learn more.
First Commonwealth Financial (FCF)
Market Cap: $1.85 billion
Tracing its roots back to the Great Depression era of 1934, First Commonwealth Financial (NYSE: FCF) is a financial holding company that provides consumer and commercial banking, wealth management, and insurance services across Pennsylvania and Ohio.
Why Are We Hesitant About FCF?
- Annual revenue growth of 5.7% over the last two years was below our standards for the banking sector
- Earnings per share fell by 1.6% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Anticipated tangible book value per share growth of 9.9% for the next year implies profitability will be modest
First Commonwealth Financial’s stock price of $18.25 implies a valuation ratio of 1.1x forward P/B. Check out our free in-depth research report to learn more about why FCF doesn’t pass our bar.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 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.
