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.
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. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Post (POST)
Market Cap: $4.66 billion
Founded in 1895, Post (NYSE: POST) is a packaged food company known for its namesake breakfast cereal and healthier-for-you snacks.
Why Do We Think Twice About POST?
- Sales are projected to tank by 2.5% over the next 12 months as demand evaporates
- Gross margin of 29.1% is below its competitors, leaving less money to invest in areas like marketing and production facilities
- Underwhelming 5.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
Post’s stock price of $102.75 implies a valuation ratio of 13.2x forward P/E. To fully understand why you should be careful with POST, check out our full research report (it’s free).
Addus HomeCare (ADUS)
Market Cap: $1.69 billion
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Why Is ADUS Not Exciting?
- Modest revenue base of $1.45 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
Addus HomeCare is trading at $92.41 per share, or 13.4x forward P/E. Read our free research report to see why you should think twice about including ADUS in your portfolio.
Glacier Bancorp (GBCI)
Market Cap: $6.05 billion
Operating through seventeen distinct bank divisions with local brands and management teams, Glacier Bancorp (NYSE: GBCI) is a bank holding company that provides various banking services to individuals and businesses across eight western states.
Why Does GBCI Fall Short?
- 9.2% annual net interest income growth over the last five years was slower than its banking peers
- Earnings per share fell by 5.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- 3.3% annual tangible book value per share growth over the last five years was slower than its banking peers
At $46.46 per share, Glacier Bancorp trades at 1.3x forward P/B. If you’re considering GBCI for your portfolio, see our FREE research report to learn more.
Stocks We Like More
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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.
