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.

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. Keeping that in mind, here is one small-cap stock that could amplify your portfolio’s returns and two that could be down big.

Market Cap: $3.11 billion

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Why Do We Pass on KLIC?

Sales stagnated over the last five years and signal the need for new growth strategies

Efficiency has decreased over the last five years as its operating margin fell by 27.7 percentage points

Earnings per share fell by 26.9% annually over the last five years while its revenue was flat, showing each sale was less profitable

At $59.67 per share, Kulicke and Soffa trades at 37.7x forward P/E. Check out our free in-depth research report to learn more about why KLIC doesn’t pass our bar.

Market Cap: $4.54 billion

Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE:RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.

Why Are We Wary of RDN?

Net premiums earned contracted by 3.2% annually over the last five years, showing unfavorable market dynamics this cycle

Operational productivity has decreased over the last two years as its combined ratio worsened by 13.7 percentage points

Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.2% annually

Radian Group is trading at $33.49 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than RDN.

Market Cap: $2.82 billion

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Are We Backing HURN?

Market share has increased this cycle as its 12.3% annual revenue growth over the last five years was exceptional

Free cash flow margin increased by 9 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Returns on capital are increasing as management’s prior bets are starting to bear fruit

Huron’s stock price of $176.41 implies a valuation ratio of 21.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.