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. That said, here is one small-cap stock that could amplify your portfolio’s returns and two best left ignored.
Two Small-Cap Stocks to Sell:
Ameris Bancorp (ABCB)
Market Cap: $5.96 billion
Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE: ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.
Why Are We Wary of ABCB?
- Muted 8.5% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Efficiency ratio is expected to worsen by 1.2 percentage points over the next year
- Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable
Ameris Bancorp is trading at $89.04 per share, or 1.4x forward P/B. To fully understand why you should be careful with ABCB, check out our full research report (it’s free).
Borr Drilling (BORR)
Market Cap: $1.39 billion
Operating one of the world's youngest jack-up fleets with an average age under eight years, Borr Drilling (NYSE: BORR) operates jack-up rigs that drill oil and gas wells in shallow waters up to 400 feet deep for exploration and production companies.
Why Is BORR Not Exciting?
- Revenue base of $1.02 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Cash burn makes us question whether it can achieve sustainable long-term growth
Borr Drilling’s stock price of $4.59 implies a valuation ratio of 69.2x forward P/E. If you’re considering BORR for your portfolio, see our FREE research report to learn more.
One Small-Cap Stock to Buy:
Crescent Energy (CRGY)
Market Cap: $4.19 billion
Controlling over 1.4 million net acres across proven U.S. basins, Crescent Energy (NYSE: CRGY) extracts oil and natural gas from underground reservoirs in Texas and the Rocky Mountains.
Why Is CRGY a Good Business?
- Market share has increased this cycle as its 36.2% annual revenue growth over the last five years was exceptional
- Superiority of its unit economics is reflected in its stellar gross margin of 60.2%
- Strong free cash flow margin of 16.9% enables it to reinvest or return capital consistently
At $12.72 per share, Crescent Energy trades at 5.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
