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. That said, here is one small-cap stock that could be the next big thing and two best left ignored.
Two Small-Cap Stocks to Sell:
ThredUp (TDUP)
Market Cap: $779.6 million
Founded to revolutionize thrifting, ThredUp (NASDAQ: TDUP) is a leading online fashion resale marketplace offering a wide selection of gently-used clothing and accessories.
Why Are We Out on TDUP?
- Sluggish trends in its orders suggest customers aren’t adopting its solutions as quickly as the company hoped
- Poor expense management has led to operating margin losses
- Negative free cash flow raises questions about the return timeline for its investments
At $6.20 per share, ThredUp trades at 48.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why TDUP doesn’t pass our bar.
Blink Charging (BLNK)
Market Cap: $97.83 million
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Are We Hesitant About BLNK?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.9% annually over the last two years
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Blink Charging is trading at $0.69 per share, or 0.6x forward price-to-sales. If you’re considering BLNK for your portfolio, see our FREE research report to learn more.
One Small-Cap Stock to Watch:
UMB Financial (UMBF)
Market Cap: $9.03 billion
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
Why Could UMBF Be a Winner?
- Market share has increased this cycle as its 17.8% annual net interest income growth over the last five years was exceptional
- Net interest margin grew by 49 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more chips to play with
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.4% over the last five years outstripped its revenue performance
UMB Financial’s stock price of $118.93 implies a valuation ratio of 1.2x forward P/B. Is now the time to initiate a position? 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 5 Growth Stocks for this month. 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.
