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. Keeping that in mind, here is one small-cap stock that could be the next big thing and two best left ignored.
Two Small-Cap Stocks to Sell:
Match Group (MTCH)
Market Cap: $8.24 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Are We Cautious About MTCH?
- Payers have declined by 4.5% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
- Concerning trends in both user engagement and monetization suggest its platform’s efficacy is declining as its average revenue per user fell by 12.1% annually
- Projected sales decline of 1% for the next 12 months points to a tough demand environment ahead
At $35.31 per share, Match Group trades at 9.3x forward EV/EBITDA. If you’re considering MTCH for your portfolio, see our FREE research report to learn more.
Agilysys (AGYS)
Market Cap: $2.52 billion
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ:AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Why Does AGYS Fall Short?
- Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 62.6%
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Agilysys’s stock price of $92.10 implies a valuation ratio of 7.2x forward price-to-sales. Read our free research report to see why you should think twice about including AGYS in your portfolio.
One Small-Cap Stock to Watch:
Onterris (ONT)
Market Cap: $567.7 million
Founded to protect a tree-lined two-lane road, Onterris (NYSE:ONT) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Does ONT Stand Out?
- Annual revenue growth of 15.4% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 44.4% annually
- Free cash flow margin increased by 3.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Onterris is trading at $15.50 per share, or 0.7x trailing 12-month price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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.