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.
The downside that can come from buying these securities is precisely why we started StockStory - to isolate the long-term winners from the losers so you can invest with confidence. That said, here are two small-cap stocks that could be the next 100 baggers and one that may have trouble.
One Small-Cap Stock to Sell:
Clean Energy Fuels (CLNE)
Market Cap: $425 million
Operating the largest network of natural gas fueling stations in North America with over 600 locations, Clean Energy Fuels (NASDAQ: CLNE) supplies renewable natural gas and conventional natural gas as fuel for commercial vehicle fleets.
Why Do We Steer Clear of CLNE?
- Annual revenue growth of 9.2% over the last five years was below our standards for the energy upstream and integrated energy sector
- Subscale operations are evident in its revenue base of $438.6 million, meaning it has fewer distribution channels than its larger rivals
- Gross margin of 24.4% reflects its high production costs and unfavorable asset base
Clean Energy Fuels is trading at $1.94 per share, or 189,000x forward P/E. If you’re considering CLNE for your portfolio, see our FREE research report to learn more.
Two Small-Cap Stocks to Watch:
Hamilton Lane (HLNE)
Market Cap: $3.86 billion
With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Why Should You Buy HLNE?
- Impressive 17.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 22.6% annually, topping its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $88.36 per share, Hamilton Lane trades at 14x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
WEX (WEX)
Market Cap: $6.35 billion
Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE: WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.
Why Could WEX Be a Winner?
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
WEX’s stock price of $182.16 implies a valuation ratio of 9.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
