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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.

Bowlero (BOWL)

Market Cap: $1.37 billion

Operating over 300 locations globally, Bowlero (NYSE:BOWL) is a contemporary bowling company merging classic lanes with entertainment and deluxe food offerings.

Why Do We Steer Clear of BOWL?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and in-store experience

2. Cash-burning history makes us doubt the long-term viability of its business model

3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Bowlero’s stock price of $11.80 implies a valuation ratio of 42.4x forward price-to-earnings. To fully understand why you should be careful with BOWL, check out our full research report (it’s free) .

Great Lakes Dredge & Dock (GLDD)

Market Cap: $523.5 million

Founded as Lydon & Drews dredging company, Great Lakes Dredge & Dock (NASDAQ:GLDD) provides dredging services, land reclamation, and coastal protection projects in the United States and internationally.

Why Do We Think GLDD Will Underperform?

1. Muted 1.4% annual revenue growth over the last five years shows its demand lagged behind its industrials peers

2. Free cash flow margin shrank by 11.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $7.80 per share, Great Lakes Dredge & Dock trades at 9.6x forward price-to-earnings. Check out our free in-depth research report to learn more about why GLDD doesn’t pass our bar .

Patterson Companies (PDCO)

Market Cap: $2.76 billion

Founded in 1877, Patterson Companies (NASDAQ:PDCO) offers a wide range of equipment, consumables, software, and services to professionals in the dental and animal health markets.

Why Is PDCO Not Exciting?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

3. ROIC of 1.4% reflects management’s challenges in identifying attractive investment opportunities

Patterson Companies is trading at $31.15 per share, or 12.6x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than PDCO .

Stocks We Like More

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