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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.

Luckily for you, our mission at StockStory is to help you make money and avoid losses by sorting the winners from the losers. Keeping that in mind, here are three small-cap stocks to swipe left on and some alternatives you should look into instead.

Columbus McKinnon (CMCO)

Market Cap: $505 million

With 19 different brands across the globe, Columbus McKinnon (NASDAQ:CMCO) offers material handling equipment for the construction, manufacturing, and transportation industries.

Why Is CMCO Risky?

1. Muted 2.4% annual revenue growth over the last two years shows its demand lagged behind its industrials peers

2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 3% annually while its revenue grew

3. Free cash flow margin shrank by 12.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $17.83 per share, Columbus McKinnon trades at 5.5x forward P/E. Read our free research report to see why you should think twice about including CMCO in your portfolio, it’s free.

Pursuit (PRSU)

Market Cap: $804.7 million

With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.

Why Are We Wary of PRSU?

1. Annual sales declines of 37% for the past five years show its products and services struggled to connect with the market

2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

3. Negative returns on capital show that some of its growth strategies have backfired

Pursuit’s stock price of $28.48 implies a valuation ratio of 7.9x forward EV-to-EBITDA. If you’re considering PRSU for your portfolio, see our FREE research report to learn more.

Markforged (MKFG)

Market Cap: $98.34 million

Beginning as a start-up at SolidWorks World–an annual design and engineering conference, Markforged (NYSE:MKFG) offers 3D printers and softwares to manufacturers of various industries.

Why Is MKFG Not Exciting?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 8.2% annually over the last two years

2. Free cash flow margin dropped by 63.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders