StockStory Flags CNO, SIGI, HOPE as Small-Cap Stocks to Avoid

Investment research firm StockStory on June 1, 2026, identified CNO Financial Group (NYSE:CNO), Selective Insurance Group (NASDAQ:SIGI), and Hope Bancorp (NASDAQ:HOPE) as small-cap stocks investors should avoid, citing subscale operations that erode competitive moats. CNO traded at $45.62, representing a forward price-to-book ratio of 1.6x. SIGI stood at $86.49, or 1.4x forward P/B, while HOPE fetched $12.52, just 0.7x forward P/B. Market capitalizations are $4.29 billion, $5.18 billion, and $1.60 billion respectively. The firm warned that despite low headline valuations, the insurers and bank face fundamental challenges in expanding market share, making them unattractive relative to other opportunities.