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.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, 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:
Boston Beer (SAM)
Market Cap: $1.77 billion
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Is SAM Risky?
- Products aren’t resonating with the market as its revenue declined by 2.2% annually over the last three years
- Operating margin declined by 9.9 percentage points over the last year as its sales cratered
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
At $174.90 per share, Boston Beer trades at 17.8x forward P/E. Read our free research report to see why you should think twice about including SAM in your portfolio.
Hope Bancorp (HOPE)
Market Cap: $1.71 billion
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Why Should You Sell HOPE?
- Net interest income stagnated over the last five years and signals the need for new growth strategies
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.1% annually while its revenue grew
- Tangible book value per share stagnated over the last two years, limiting its ability to leverage its balance sheet to make additional investments
Hope Bancorp’s stock price of $13.42 implies a valuation ratio of 0.7x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.
One Small-Cap Stock to Watch:
Gevo (GEVO)
Market Cap: $306.5 million
Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ: GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.
Why Are We Positive on GEVO?
- Market share has increased this cycle as its 19.6% annual revenue growth over the last ten years was exceptional
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
Gevo is trading at $1.29 per share, or 6.6x forward EV-to-EBITDA. Is now a good time to buy? See for yourself 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
