2 Small-Cap Stocks to Buy Now
(And 1 You Might Want to Ditch Fast)
If you’ve ever dreamed of catching the next big stock before Wall Street wakes up to it, you’re probably already eyeing small-cap stocks. They’re risky, sure, but they’re also where some of the biggest long-term wins happen.
Case in point: Nvidia was once a small-cap stock. Fast forward five years, and it delivered a jaw-dropping +1,545% return. So yeah, small caps can be a goldmine, if you know where to look.
That’s where StockStory steps in with its latest spotlight on two small-cap stocks you might want to bet on, and one that could be dead weight in your portfolio.
The Small-Cap to Be Cautious With: REV Group (REVG)
Market Cap: $2.23 billion
Stock Price (as of June 27, 2025): $45.78
Sector: Specialty Vehicles
REV Group made headlines for launching North America’s first fully electric fire truck, which sounds impressive. But the financials are not so hot.
Here are the red flags.
Flat sales over the last five years. Ouch. High input costs, dragging gross margins to just 12%. And weak expense control, with operating margins stuck at 3%, well below the industry average.
At 16.4x forward P/E, REVG isn’t exactly cheap either. Unless it pulls off a dramatic turnaround, this might be a stock to park in the “watch but don’t buy” lot.
Small-Cap #1 to Watch: Upwork (UPWK)
Market Cap: $1.79 billion
Stock Price (as of June 27, 2025): $13.62
Sector: Online Freelance Platform
Remember Elance and oDesk? They merged in 2013 to create Upwork, and it’s now a go-to platform for remote freelancers and global businesses. But here’s why Upwork isn’t just riding the gig economy wave, it is monetizing it.
Revenue per customer has climbed by 8.3% annually. Earnings per share exploded, 395% annual growth over the last 3 years. And free cash flow margins grew by 27 percentage points, giving the company solid fuel for expansion, share buybacks, or even dividends.
With a forward EV/EBITDA of 10.2x, Upwork might just be undervalued. If you believe in the long-term staying power of remote work, this could be your sleeper pick.
Small-Cap #2 to Watch: Republic Bancorp (RBCAA)
Market Cap: $1.42 billion
Stock Price (as of June 27, 2025): $72.97
Sector: Regional Banking
Republic Bancorp, a regional financial player, is punching way above its weight.
It has had a 10.3% annual revenue growth over the past two years, a 5% net interest margin, among the best in the biz, and a 13.2% EPS growth annually, beating even its revenue gains.
Trading at just 1.3x forward price-to-book, RBCAA looks like a smart play for investors who like consistency, dividends, and high-performing financials.
Yes, small-cap stocks can feel like the Wild West, with less analyst coverage, more volatility, and no guaranteed safety net. But that’s also what makes them ripe with potential.
