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.
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 two small-cap stocks that could amplify your portfolio’s returns and one that may have trouble.
One Small-Cap Stock to Sell:
BOK Financial (BOKF)
Market Cap: $7.81 billion
Tracing its roots back to 1910 when Oklahoma was still a young state, BOK Financial (NASDAQ: BOKF) is a regional bank holding company that provides commercial banking, consumer banking, and wealth management services across eight states in the central and southwestern US.
Why Do We Steer Clear of BOKF?
- 2.2% annual revenue growth over the last five years was slower than its banking peers
- Annual net interest income growth of 3.7% over the last five years was below our standards for the banking sector
- Net interest margin of 2.8% reflects its high servicing and capital costs
BOK Financial’s stock price of $128.58 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why BOKF doesn’t pass our bar.
Two Small-Cap Stocks to Watch:
SM Energy (SM)
Market Cap: $7.30 billion
Operating across three key regions with over 328,000 net acres under its control, SM Energy (NYSE: SM) explores for, develops, and produces oil, natural gas, and natural gas liquids primarily from shale formations in Texas and Utah.
Why Are We Bullish on SM?
- Impressive 22.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 88.3%
- SM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
SM Energy is trading at $30.48 per share, or 5.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Gevo (GEVO)
Market Cap: $542.9 million
Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ: GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.
Why Do We Like GEVO?
- Annual revenue growth of 18.2% over the past ten years was outstanding, reflecting market share gains this cycle
- EBITDA margin improvement of 7,903.4 percentage points over the last five years demonstrates its ability to scale efficiently
At $2.31 per share, Gevo trades at 16.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
