2 Small-Cap Stocks with Solid Fundamentals and 1 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.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. Keeping that in mind, here are two small-cap stocks that could be the next big thing and one best left ignored.
One Small-Cap Stock to Sell:
Ryder (R)
Market Cap: $9.21 billion
As one of the first companies to introduce the idea of leasing trucks, Ryder (NYSE:R) provides rental vehicles to businesses and delivers packages directly to homes or businesses.
Why Are We Hesitant About R?
- Annual sales growth of 2.4% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Gross margin of 19.7% reflects its high production costs
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
At $238.10 per share, Ryder trades at 14.8x forward P/E. Dive into our free research report to see why there are better opportunities than R.
Two Small-Cap Stocks to Watch:
Tutor Perini (TPC)
Market Cap: $4.13 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 Will TPC Beat the Market?
- Annual revenue growth of 18.2% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin jumped by 7.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Tutor Perini is trading at $78.67 per share, or 15.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Gulfport Energy (GPOR)
Market Cap: $2.90 billion
With drilling operations focused on the Utica Shale in eastern Ohio and the SCOOP play in central Oklahoma, Gulfport Energy (NYSE:GPOR) drills for and produces natural gas from underground shale formations.
Why Could GPOR Be a Winner?
- Annual revenue growth of 10.8% over the past ten years was outstanding, reflecting market share gains this cycle
- Highly-profitable operating model results in strong unit economics and a stellar gross margin of 70.9%
- Robust free cash flow margin of 17% gives it many options for capital deployment
Gulfport Energy’s stock price of $163.71 implies a valuation ratio of 7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.