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. Keeping that in mind, here is one small-cap stock that could be the next big thing and two best left ignored.
Two Small-Cap Stocks to Sell:
Haemonetics (HAE)
Market Cap: $3.38 billion
With roots dating back to 1971 and a mission to improve blood-related healthcare, Haemonetics (NYSE:HAE) provides specialized medical devices and software for blood collection, processing, and management across plasma centers, blood banks, and hospitals.
Why Does HAE Give Us Pause?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Subscale operations are evident in its revenue base of $1.33 billion, meaning it has fewer distribution channels than its larger rivals
Haemonetics is trading at $74.41 per share, or 14.8x forward P/E. To fully understand why you should be careful with HAE, check out our full research report (it’s free).
Bank of Hawaii (BOH)
Market Cap: $3.25 billion
Founded in 1897 as a financial anchor for the newly annexed Hawaiian territory, Bank of Hawaii (NYSE:BOH) is a financial institution providing banking, investment, and insurance services primarily to customers in Hawaii, Guam, and other Pacific Islands.
Why Do We Think Twice About BOH?
- Net interest income trends were unexciting over the last five years as its 2.8% annual growth was below the typical banking firm
- Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.4% annually
Bank of Hawaii’s stock price of $78.68 implies a valuation ratio of 2x forward P/B. Dive into our free research report to see why there are better opportunities than BOH.
One Small-Cap Stock to Watch:
Astec (ASTE)
Market Cap: $1.29 billion
Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.
Why Could ASTE Be a Winner?
- Sales outlook for the upcoming 12 months calls for 11.2% growth, an acceleration from its two-year trend
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 18.5% annually, topping its revenue gains
At $55.94 per share, Astec trades at 14.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.