
3 Small-Cap Stocks Skating on Thin Ice

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.
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.
Supernus Pharmaceuticals (SUPN)
Market Cap: $1.75 billion
Founded in 2005, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and commercializes treatments for central nervous system (CNS) disorders, focusing on epilepsy, ADHD, and Parkinson’s disease.
Why Should You Dump SUPN?
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Sales were flat over the last two years, indicating it’s failed to expand this cycle
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Revenue base of $661.8 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
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Estimated sales decline of 5.6% for the next 12 months implies an even more challenging demand environment
Supernus Pharmaceuticals’s stock price of $30.40 implies a valuation ratio of 16.3x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than SUPN .
Ingram Micro (INGM)
Market Cap: $4.45 billion
Operating as a critical link in the global technology supply chain with a presence in 57 countries, Ingram Micro (NYSE:INGM) is a global technology distributor that connects manufacturers with resellers, providing hardware, software, cloud services, and logistics solutions.
Why Should You Sell INGM?
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Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.5% annually over the last two years
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Earnings per share have dipped by 7.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term
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Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $18.40 per share, Ingram Micro trades at 6.1x forward price-to-earnings. Check out our free in-depth research report to learn more about why INGM doesn’t pass our bar .
Insperity (NSP)
Market Cap: $3.26 billion
Pioneering the professional employer organization (PEO) industry it helped create, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.