ET 07:49

StockStory Flags Jack in the Box, Community Financial, DHT Holdings as Risky Small-Caps

StockStory, a research firm, on May 29, 2026, identified three small-cap stocks as risky investments due to operational challenges and valuation concerns: Jack in the Box (NASDAQ:JACK), Community Financial System (NYSE:CBU), and DHT Holdings (NYSE:DHT). Jack in the Box, the fast-food chain with a $220.5 million market cap, traded at $11.80 per share, or 3.2 times forward earnings. Community Financial System, a bank holding company valued at $3.38 billion, saw its shares at $64.33, implying a 1.5 times forward price-to-book ratio. DHT Holdings, an operator of very large crude carriers worth $2.63 billion, changed hands at $16.25 per share, or 6 times forward earnings. The firm cited concerns that subscale operations and limited competitive moats could undermine these stocks’ potential, urging investors to seek alternatives.

EditorWong Mei Ling