Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street. Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
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. That said, 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:
LiveRamp (RAMP)
Market Cap: $1.83 billion
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE: RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
Why Do We Think Twice About RAMP?
- Customers were hesitant to make long-term commitments to its software as its 7.4% average ARR growth over the last year was sluggish
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 3.6 percentage points over the last year demonstrates its ability to scale efficiently
LiveRamp is trading at $28.74 per share, or 2.3x forward price-to-sales. If you’re considering RAMP for your portfolio, see our FREE research report to learn more.
Two Small-Cap Stocks to Watch:
Montrose (MEG)
Market Cap: $839.6 million
Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Does MEG Stand Out?
- Impressive 17.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 109% annually
- Free cash flow margin increased by 6.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Montrose’s stock price of $23.76 implies a valuation ratio of 21.5x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Zions Bancorporation (ZION)
Market Cap: $7.22 billion
Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ: ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.
Why Are We Fans of ZION?
- Impressive 14.5% annual net interest income growth over the last five years indicates it’s winning market share this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 22.5% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $49.05 per share, Zions Bancorporation trades at 1.1x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 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 Kadant (+351% 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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