2 Small-Cap Stocks to Own for Decades and 1 That Underwhelm

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.

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 two small-cap stocks that could be the next 100 baggers and one that may have trouble.

One Small-Cap Stock to Sell:

Procore Technologies (PCOR)

Market Cap: $6.37 billion

With a mission to build software for the people that build the world, Procore Technologies (NYSE:PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.

Why Does PCOR Worry Us?

1. Customers were hesitant to make long-term commitments to its software as its 14.9% average ARR growth over the last year was sluggish
2. Estimated sales growth of 13% for the next 12 months implies demand will slow from its two-year trend
3. Persistent operating margin losses suggest the business manages its expenses poorly

Procore Technologies’s stock price of $38.70 implies a valuation ratio of 3.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PCOR.

Two Small-Cap Stocks to Buy:

FuelCell Energy (FCEL)

Market Cap: $936.3 million

Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.

Why Should You Buy FCEL?

1. Annual revenue growth of 38.8% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 40.6% annually
3. Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day

At $24.32 per share, FuelCell Energy trades at 6.6x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Viper Energy (VNOM)

Market Cap: $8.49 billion

Operating a business model that requires no drilling rigs or production equipment of its own, Viper Energy (NASDAQ:VNOM) owns mineral and royalty interests in oil and gas properties, collecting revenue when operators extract resources from land.

Why Do We Love VNOM?

1. Impressive 36.8% annual revenue growth over the last ten years indicates it’s winning market share this cycle
2. Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 99.8%
3. EBITDA margin improvement of 6.4 percentage points over the last five years demonstrates its ability to scale efficiently

Viper Energy is trading at $43.28 per share, or 15.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.