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 amplify your portfolio’s returns and two best left ignored.
Two Small-Cap Stocks to Sell:
Artivion (AORT)
Market Cap: $1.05 billion
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE:AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Does AORT Give Us Pause?
- Smaller revenue base of $471.5 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Underwhelming 2.4% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $22.23 per share, Artivion trades at 44x forward P/E. Read our free research report to see why you should think twice about including AORT in your portfolio.
Goodyear (GT)
Market Cap: $1.35 billion
With its iconic blimp floating above major sporting events since 1925, Goodyear (NASDAQ:GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.
Why Should You Sell GT?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.5% annually over the last two years
- Earnings per share fell by 17.7% annually over the last five years while its revenue grew, partly because it diluted shareholders
- Cash burn makes us question whether it can achieve sustainable long-term growth
Goodyear’s stock price of $4.74 implies a valuation ratio of 0.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GT.
One Small-Cap Stock to Watch:
FirstCash (FCFS)
Market Cap: $9.09 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 Is FCFS on Our Radar?
- Impressive 21.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Additional sales over the last five years increased its profitability as the 27.5% annual growth in its earnings per share outpaced its revenue
- Industry-leading 13.4% return on equity demonstrates management’s skill in finding high-return investments
FirstCash is trading at $210.47 per share, or 17.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.