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.
Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. That said, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.
Tutor Perini (TPC)
Market Cap: $4.36 billion
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE: TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Are We Hesitant About TPC?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 6.7%
- Earnings per share fell by 18.8% annually over the last five years while its revenue was flat, partly because it diluted shareholders
Tutor Perini is trading at $82.74 per share, or 18.7x forward P/E. To fully understand why you should be careful with TPC, check out our full research report (it’s free).
Enviri (NVRI)
Market Cap: $1.53 billion
Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE: NVRI) offers steel and waste handling services.
Why Do We Think NVRI Will Underperform?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Cash burn makes us question whether it can achieve sustainable long-term growth
- High net-debt-to-EBITDA ratio of 5× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $18.92 per share, Enviri trades at 10.6x forward EV-to-EBITDA. If you’re considering NVRI for your portfolio, see our FREE research report to learn more.
CNO Financial Group (CNO)
Market Cap: $4.07 billion
Rebranded from Conseco in 2010 to signal a fresh start after navigating financial challenges, CNO Financial Group (NYSE: CNO) develops and markets health insurance, annuities, and life insurance products primarily targeting middle-income pre-retirees and retirees.
Why Do We Steer Clear of CNO?
- Stagnant net premiums earned over the last five years suggest the firm needs alternative growth strategies
- Efficiency has decreased over the last two years as its pre-tax profit margin fell by 2.3 percentage points
- Book value per share tumbled by 7.6% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
CNO Financial Group’s stock price of $43.06 implies a valuation ratio of 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than CNO.
Stocks We Like More
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
