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.

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 three small-cap stocks to swipe left on and some alternatives you should look into instead.

Energizer (ENR)

Market Cap: $1.72 billion

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.

Why Are We Out on ENR?

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 Anticipated sales growth of 1.3% for the next year implies demand will be shaky Free cash flow margin shrank by 4.6 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Energizer is trading at $23.86 per share, or 6.5x forward P/E. Read our free research report to see why you should think twice about including ENR in your portfolio, it’s free.

MYR Group (MYRG)

Market Cap: $2.55 billion

Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ:MYRG) is a specialty contractor in the electrical construction industry.

Why Do We Think MYRG Will Underperform?

New orders were hard to come by as its backlog was flat over the past two years Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.9% annually Eroding returns on capital suggest its historical profit centers are aging

At $163.94 per share, MYR Group trades at 26.1x forward P/E. Check out our free in-depth research report to learn more about why MYRG doesn’t pass our bar.

Dave & Buster's (PLAY)

Market Cap: $746.8 million

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ:PLAY) operates a chain of arcades providing immersive entertainment experiences.

Why Do We Avoid PLAY?

Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience Cash burn makes us question whether it can achieve sustainable long-term growth Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

Story Continues

Dave & Buster’s stock price of $21.09 implies a valuation ratio of 7.9x forward P/E. If you’re considering PLAY for your portfolio, see our FREE research report to learn more.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.

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