Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on. But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
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 could be down big.
One Small-Cap Stock to Sell:
Fortune Brands (FBIN)
Market Cap: $5.11 billion
Targeting a wide customer base of residential and commercial customers, Fortune Brands (NYSE:FBIN) makes plumbing, security, and outdoor living products.
Why Do We Steer Clear of FBIN?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Fortune Brands’s stock price of $42.79 implies a valuation ratio of 14.8x forward P/E. Check out our free in-depth research report to learn more about why FBIN doesn’t pass our bar.
Two Small-Cap Stocks to Watch:
EXL (EXLS)
Market Cap: $5.67 billion
Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.
What Makes EXLS Stand Out?
- Annual revenue growth of 16.9% over the last five years was superb and indicates its market share increased during this cycle
- Market share will likely rise over the next 12 months as its expected revenue growth of 14.3% is robust
- Share repurchases over the last five years enabled its annual earnings per share growth of 19% to outpace its revenue gains
EXL is trading at $37.42 per share, or 15.9x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Old National Bank (ONB)
Market Cap: $9.63 billion
Tracing its roots back to 1834 when Andrew Jackson was president, Old National Bancorp (NASDAQ:ONB) is a bank holding company that provides commercial and consumer loans, deposit services, wealth management, and treasury solutions primarily throughout the Midwest region.
Why Does ONB Stand Out?
- Impressive 24.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Annual net interest income growth of 30.7% over the past five years was outstanding, reflecting market share gains this cycle
- Operating profits are forecasted to increase over the next year as it scales and becomes more productive
At $25.50 per share, Old National Bank trades at 1.1x forward P/B. Is now a good time to buy? Find out 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.