Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
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 100 bagger and two that could be down big.
Two Small-Cap Stocks to Sell:
Oshkosh (OSK)
Market Cap: $9.24 billion
Oshkosh (NYSE: OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Why Is OSK Not Exciting?
- The company has faced growth challenges as its 3.9% annual revenue increases over the last two years fell short of other industrials companies
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 16.5%
- Earnings per share lagged its peers over the last two years as they only grew by 4.5% annually
Oshkosh is trading at $147.52 per share, or 13.2x forward P/E. If you’re considering OSK for your portfolio, see our FREE research report to learn more.
Hayward (HAYW)
Market Cap: $2.91 billion
Credited with introducing the first variable-speed pool pump, Hayward (NYSE: HAYW) makes residential and commercial pool equipment and accessories.
Why Are We Wary of HAYW?
- Annual revenue growth of 5.1% over the last five years was below our standards for the industrials sector
- Estimated sales growth of 4.2% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share have dipped by 20.8% annually over the past four years, which is concerning because stock prices follow EPS over the long term
Hayward’s stock price of $13.38 implies a valuation ratio of 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than HAYW.
One Small-Cap Stock to Buy:
Crescent Energy (CRGY)
Market Cap: $4.41 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 Do We Love CRGY?
- Annual revenue growth of 46.3% over the past five years was outstanding, reflecting market share gains this cycle
- Excellent production efficiency leads to a top-tier gross margin of 58.5%
- Robust free cash flow margin of 15.8% gives it many options for capital deployment
At $13.25 per share, Crescent Energy trades at 7.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
