Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings. However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.

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

Revolve (RVLV)

Market Cap: $1.22 billion

Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve (NASDAQ:RVLV) is a fashion retailer leveraging social media and a community of fashion influencers to drive its merchandising strategy.

Why Should You Sell RVLV?

1. Competition may be pulling attention away from its platform as its 7.4% average growth in active customers was choppy

2. Key performance metrics have been flashing red recently as its average revenue per buyer dropped by 4% annually while engagement was weak

3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 19.7% annually

Revolve is trading at $17.29 per share, or 16x forward EV/EBITDA. Read our free research report to see why you should think twice about including RVLV in your portfolio, it’s free.

Mueller Water Products (MWA)

Market Cap: $3.70 billion

As one of the oldest companies in the water infrastructure industry, Mueller (NYSE:MWA) is a provider of water infrastructure products and flow control systems for various sectors.

Why Is MWA Not Exciting?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.7%

3. Free cash flow margin has shown no improvement over the last five years

Mueller Water Products’s stock price of $24.80 implies a valuation ratio of 18.7x forward P/E. Check out our free in-depth research report to learn more about why MWA doesn’t pass our bar.

Worthington (WOR)

Market Cap: $2.83 billion

Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets.

Why Do We Think WOR Will Underperform?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 19.4% annually over the last five years

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

3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions