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.

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.

Zevia (ZVIA)

Market Cap: $147.5 million

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Why Do We Think Twice About ZVIA?

1. Muted 3.9% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers

2. Revenue base of $155 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale

3. Poor expense management has led to operating losses

Zevia’s stock price of $2.47 implies a valuation ratio of 0.9x forward price-to-sales. Read our free research report to see why you should think twice about including ZVIA in your portfolio, it’s free .

EnerSys (ENS)

Market Cap: $3.24 billion

Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries.

Why Does ENS Worry Us?

1. Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth

2. Gross margin of 25.3% is below its competitors, leaving less money to invest in areas like marketing and R&D

3. 4.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $82.91 per share, EnerSys trades at 8.6x forward price-to-earnings. If you’re considering ENS for your portfolio, see our FREE research report to learn more .

3D Systems (DDD)

Market Cap: $242.6 million

Founded by the inventor of stereolithography, 3D Systems (NYSE:DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.

Why Do We Pass on DDD?

1. Annual sales declines of 7% for the past five years show its products and services struggled to connect with the market during this cycle

2. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders