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.
Cushman & Wakefield (CWK)
Market Cap: $2.5 billion
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Do We Think CWK Will Underperform?
- Products and services have few die-hard fans as sales have declined by 2.4% annually over the last two years
- Earnings per share fell by 8.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Cushman & Wakefield’s stock price of $10.80 implies a valuation ratio of 9.7x forward P/E. Read our free research report to see why you should think twice about including CWK in your portfolio.
Tutor Perini (TPC)
Market Cap: $2.25 billion
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Is TPC Not Exciting?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Gross margin of 6.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Tutor Perini is trading at $42.72 per share, or 20.5x forward P/E. Dive into our free research report to see why there are better opportunities than TPC.
Concentrix (CNXC)
Market Cap: $3.65 billion
With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.
Why Does CNXC Fall Short?
- Estimated sales growth of 1% for the next 12 months implies demand will slow from its two-year trend
- Incremental sales over the last two years were less profitable as its earnings per share were flat while its revenue grew
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
At $57.15 per share, Concentrix trades at 4.8x forward P/E. To fully understand why you should be careful with CNXC, check out our full research report (it’s free).
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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.
