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.
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 that could be down big.
Two Small-Cap Stocks to Sell:
LeMaitre (LMAT)
Market Cap: $1.93 billion
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Does LMAT Give Us Pause?
- Subscale operations are evident in its revenue base of $240.9 million, meaning it has fewer distribution channels than its larger rivals
LeMaitre’s stock price of $84.98 implies a valuation ratio of 32.3x forward P/E. Dive into our free research report to see why there are better opportunities than LMAT.
Amneal (AMRX)
Market Cap: $3.88 billion
Founded in 2002 and growing into one of America's largest generic drug producers, Amneal Pharmaceuticals (NASDAQ: AMRX) develops, manufactures, and distributes generic medicines, specialty branded drugs, biosimilars, and injectable products for the U.S. healthcare market.
Why Are We Cautious About AMRX?
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 1.9 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
Amneal is trading at $12.46 per share, or 14.5x forward P/E. To fully understand why you should be careful with AMRX, check out our full research report (it’s free for active Edge members).
One Small-Cap Stock to Buy:
Piper Sandler (PIPR)
Market Cap: $6.01 billion
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Is PIPR a Good Business?
- Market share has increased this cycle as its 17.4% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 35.2% annually, topping its revenue gains
- Balance sheet strength has increased this cycle as its 12.8% annual tangible book value per share growth over the last two years was exceptional
At $340.02 per share, Piper Sandler trades at 20.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-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.
