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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Covista (CVSA)
Market Cap: $4.49 billion
Formerly known as DeVry Education Group, Covista (NYSE: CVSA) is a global provider of workforce solutions and educational services.
Why Do We Avoid CVSA?
- Sales trends were unexciting over the last five years as its 15.2% annual growth was below the typical consumer discretionary company
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.8 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $119.07 per share, Covista trades at 14x forward P/E. Check out our free in-depth research report to learn more about why CVSA doesn’t pass our bar.
Oshkosh (OSK)
Market Cap: $8.35 billion
Oshkosh (NYSE: OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Why Do We Think Twice About OSK?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 4.7% declines over the past two years
- High input costs result in an inferior gross margin of 16.3% that must be offset through higher volumes
- Earnings per share have contracted by 6.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Oshkosh is trading at $139.54 per share, or 11.5x forward P/E. Dive into our free research report to see why there are better opportunities than OSK.
Albany (AIN)
Market Cap: $2.01 billion
Founded in 1895, Albany (NYSE: AIN) is a global textiles and materials processing company, specializing in machine clothing for paper mills and engineered composite structures for aerospace and other industries.
Why Is AIN Risky?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.2 percentage points
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Albany’s stock price of $71.08 implies a valuation ratio of 1.7x trailing 12-month price-to-sales. If you’re considering AIN for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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.
