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. That said, here are two small-cap stocks that could be the next 100 baggers and one best left ignored.
One Small-Cap Stock to Sell:
Lantheus (LNTH)
Market Cap: $6.55 billion
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Do We Think Twice About LNTH?
- Annual revenue growth of 4% over the last two years was below our standards for the healthcare sector
- Projected sales decline of 1.2% for the next 12 months points to a tough demand environment ahead
- Efficiency has decreased over the last two years as its adjusted operating margin fell by 9.9 percentage points
Lantheus is trading at $100.20 per share, or 17.4x forward P/E. If you’re considering LNTH for your portfolio, see our FREE research report to learn more.
Two Small-Cap Stocks to Watch:
Asure Software (ASUR)
Market Cap: $242.3 million
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ:ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Does ASUR Stand Out?
- Products and services have many advocates, as seen in its respectable 16.1% annual sales growth over the last two years
- Billings have averaged 26.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Asure Software’s stock price of $8.39 implies a valuation ratio of 1.4x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Astec (ASTE)
Market Cap: $960.6 million
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Are We Positive on ASTE?
- 9.6% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Operating margin expanded by 4.6 percentage points over the last five years as it scaled and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.9% over the last two years outstripped its revenue performance
At $41.76 per share, Astec trades at 11.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.