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. Keeping that in mind, here is one small-cap stock that could amplify your portfolio’s returns and two that may have trouble.
Two Small-Cap Stocks to Sell:
Fulton Financial (FULT)
Market Cap: $3.68 billion
Tracing its roots back to 1882 in the heart of Pennsylvania, Fulton Financial (NASDAQ: FULT) is a financial holding company that provides banking, lending, and wealth management services to consumers and businesses across five Mid-Atlantic states.
Why Are We Wary of FULT?
- Muted 8.7% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Efficiency ratio is expected to worsen by 2.6 percentage points over the next year
- Estimated tangible book value per share growth of 8.4% for the next 12 months implies profitability will slow from its two-year trend
Fulton Financial’s stock price of $20.51 implies a valuation ratio of 1.1x forward P/B. To fully understand why you should be careful with FULT, check out our full research report (it’s free).
Clear Channel Outdoor (CCO)
Market Cap: $1.20 billion
With thousands of digital and traditional displays lighting up America's highways, city streets, and airports, Clear Channel Outdoor (NYSE: CCO) operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.
Why Are We Hesitant About CCO?
- Sales tumbled by 2.9% annually over the last five years, showing market trends are working against its favor during this cycle
- Negative free cash flow raises questions about the return timeline for its investments
- 12× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Clear Channel Outdoor is trading at $2.39 per share, or 14.1x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than CCO.
One Small-Cap Stock to Buy:
CBIZ (CBZ)
Market Cap: $1.41 billion
With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.
Why Are We Backing CBZ?
- Annual revenue growth of 31.7% over the past two years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Earnings per share have massively outperformed its peers over the last two years, increasing by 21.4% annually
At $28.66 per share, CBIZ trades at 8.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
