1 Small-Cap Stock with Exciting Potential and 2 We Brush Off

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 is one small-cap stock that could be the next big thing and two that could be down big.

Two Small-Cap Stocks to Sell:

Blink Charging (BLNK)

Market Cap: $99.6 million

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Does BLNK Worry Us?

1. Annual sales declines of 14.2% for the past two years show its products and services struggled to connect with the market during this cycle
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Blink Charging’s stock price of $0.70 implies a valuation ratio of 0.7x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it’s free).

Artisan Partners (APAM)

Market Cap: $2.68 billion

Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.

Why Is APAM Not Exciting?

1. Sales trends were unexciting over the last five years as its 5.9% annual growth was below the typical financials company
2. Performance over the past five years shows its incremental sales were less profitable, as its 3.4% annual earnings per share growth trailed its revenue gains

Artisan Partners is trading at $37.68 per share, or 9.3x forward P/E. Read our free research report to see why you should think twice about including APAM in your portfolio.

One Small-Cap Stock to Buy:

Paymentus (PAY)

Market Cap: $3.59 billion

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE:PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Why Do We Love PAY?

1. Market share has increased this cycle as its 39.5% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 65.8% over the last two years outstripped its revenue performance

At $28.31 per share, Paymentus trades at 35.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 for 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 (+1,326% 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.