1 Small-Cap Stock to Own for Decades and 2 We Question

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.

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 best left ignored.

Two Small-Cap Stocks to Sell:

MGM Resorts (MGM)

Market Cap: $9.38 billion

Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.

Why Should You Dump MGM?

1. Annual sales growth of 4.2% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

MGM Resorts is trading at $36.70 per share, or 17.5x forward P/E. If you’re considering MGM for your portfolio, see our FREE research report to learn more.

Perella Weinberg (PWP)

Market Cap: $1.30 billion

Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ:PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.

Why Do We Avoid PWP?

1. Earnings per share have contracted by 25.2% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance
2. Negative return on equity shows management lost money while trying to expand the business

Perella Weinberg’s stock price of $18.64 implies a valuation ratio of 14.5x forward P/E. Dive into our free research report to see why there are better opportunities than PWP.

One Small-Cap Stock to Buy:

CLEAR Secure (YOU)

Market Cap: $4.81 billion

Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE:YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.

Why Is YOU a Top Pick?

1. Impressive 21.2% annual revenue growth over the last two years indicates it’s winning market share
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. YOU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $48.08 per share, CLEAR Secure trades at 4.7x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.