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 be the next big thing and two that could be down big.
Two Small-Cap Stocks to Sell:
Vail Resorts (MTN)
Market Cap: $5.07 billion
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE: MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Why Does MTN Give Us Pause?
- 1.3% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Demand for its offerings was relatively low as its number of skier visits has underwhelmed
- Projected sales growth of 1.4% for the next 12 months suggests sluggish demand
Vail Resorts is trading at $140.85 per share, or 20.5x forward P/E. If you’re considering MTN for your portfolio, see our FREE research report to learn more.
Vishay Precision (VPG)
Market Cap: $402.2 million
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Do We Pass on VPG?
- Sales tumbled by 9% annually over the last two years, showing market trends are working against its favor during this cycle
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.3% annually while its revenue grew
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $30.26 per share, Vishay Precision trades at 32.2x forward P/E. Read our free research report to see why you should think twice about including VPG in your portfolio.
One Small-Cap Stock to Buy:
ServisFirst Bancshares (SFBS)
Market Cap: $3.73 billion
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE: SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Why Do We Love SFBS?
- Solid 9.7% annual net interest income growth over the last five years indicates its offerings are gaining share
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 6.8% annually
- Impressive 13.3% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
ServisFirst Bancshares’s stock price of $68.32 implies a valuation ratio of 2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% 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
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