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. Keeping that in mind, here are two small-cap stocks that could be the next big thing and one that could be down big.
One Small-Cap Stock to Sell:
EverQuote (EVER)
Market Cap: $570.3 million
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Are We Hesitant About EVER?
- Excessive marketing spend signals little organic demand and traction for its platform
EverQuote is trading at $15.84 per share, or 3.9x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EVER.
Two Small-Cap Stocks to Watch:
Ryan Specialty (RYAN)
Market Cap: $4.73 billion
Founded in 2010 by insurance industry veteran Patrick Ryan, Ryan Specialty (NYSE:RYAN) is a wholesale insurance broker and underwriting manager that helps retail brokers place complex or hard-to-place risks with insurance carriers.
Why Do We Love RYAN?
- Annual revenue growth of 21.2% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last four years, increasing by 15.6% annually
- Robust free cash flow margin of 19.2% gives it many options for capital deployment
At $37.12 per share, Ryan Specialty trades at 16.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
MediaAlpha (MAX)
Market Cap: $544.6 million
Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha (NYSE:MAX) operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.
Why Do We Like MAX?
- Annual revenue growth of 69.4% over the past two years was outstanding, reflecting market share gains this cycle
- Forecasted revenue growth of 11.8% for the next 12 months indicates its momentum over the last two years is sustainable
- Additional sales over the last two years increased its profitability as the 564% annual growth in its earnings per share outpaced its revenue
MediaAlpha’s stock price of $9.68 implies a valuation ratio of 7.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
