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 are two small-cap stocks that could be the next 100 baggers and one that may have trouble.
One Small-Cap Stock to Sell:
BILL (BILL)
Market Cap: $3.2 billion
Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE: BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses.
Why Does BILL Worry Us?
- Products, pricing, or go-to-market strategy may need some adjustments as its 12.4% average billings growth over the last year was weak
- Estimated sales growth of 12.1% for the next 12 months is soft and implies weaker demand
- Operating margin expanded by 1.8 percentage points over the last year as it scaled and became more efficient
BILL is trading at $36.16 per share, or 2.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than BILL.
Two Small-Cap Stocks to Watch:
Scorpio Tankers (STNG)
Market Cap: $3.49 billion
Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.
Why Are We Fans of STNG?
- Superior product capabilities and pricing power are reflected in its best-in-class gross margin of 68.8%
- Excellent operating margin of 49.4% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
At $69.35 per share, Scorpio Tankers trades at 6.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stock Yards Bank (SYBT)
Market Cap: $2.32 billion
Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.
Why Do We Like SYBT?
- Annual net interest income growth of 16.9% over the past five years was outstanding, reflecting market share gains this cycle
- Net interest income outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Impressive 10.1% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
Stock Yards Bank’s stock price of $76.43 implies a valuation ratio of 1.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
