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 is one small-cap stock that could amplify your portfolio’s returns and two that could be down big.
Two Small-Cap Stocks to Sell:
Haemonetics (HAE)
Market Cap: $3.93 billion
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE:HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Does HAE Worry Us?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Subscale operations are evident in its revenue base of $1.33 billion, meaning it has fewer distribution channels than its larger rivals
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend
Haemonetics is trading at $84.04 per share, or 16.1x forward P/E. To fully understand why you should be careful with HAE, check out our full research report (it’s free).
FirstCash (FCFS)
Market Cap: $7.29 billion
Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.
Why Are We Hesitant About FCFS?
- 6.9% annual revenue growth over the last two years was slower than its financials peers
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 159% annually over the last five years
At $165.32 per share, FirstCash trades at 17.1x forward P/E. Check out our free in-depth research report to learn more about why FCFS doesn’t pass our bar.
One Small-Cap Stock to Buy:
CBIZ (CBZ)
Market Cap: $2.90 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 Bullish on CBZ?
- Market share has increased this cycle as its 31% annual revenue growth over the last two years was exceptional
- Forecasted revenue growth of 10% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 28.3% annually over the last two years and trumped its peers
CBIZ’s stock price of $54.28 implies a valuation ratio of 13.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.