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 are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Photronics (PLAB)
Market Cap: $1.32 billion
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Why Does PLAB Fall Short?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.1% annually over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 36.2%
Photronics is trading at $21.77 per share, or 11.9x forward P/E. Dive into our free research report to see why there are better opportunities than PLAB.
Cracker Barrel (CBRL)
Market Cap: $1.09 billion
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ:CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Why Do We Avoid CBRL?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Cracker Barrel’s stock price of $49.16 implies a valuation ratio of 17.3x forward P/E. Check out our free in-depth research report to learn more about why CBRL doesn’t pass our bar.
StoneX (SNEX)
Market Cap: $5.02 billion
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
Why Are We Hesitant About SNEX?
- Earnings per share lagged its peers over the last four years as they only grew by 3.2% annually
- Debt-to-equity ratio of 7.2× is concerningly high, indicating excessive leverage that could limit financial flexibility
At $96.20 per share, StoneX trades at 2.3x forward P/E. If you’re considering SNEX for your portfolio, see our FREE research report to learn more.
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% 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
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