The Russell 2000 is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up.
Market Cap: $525.2 million
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.
Why Is USNA Not Exciting?
At $27.78 per share, USANA trades at 9.7x forward price-to-earnings. If you’re considering USNA for your portfolio, see our FREE research report to learn more.
Market Cap: $740.8 million
Playing a significant role in the development of the hydraulic lift truck, Hyster-Yale (NYSE:HY) designs, manufactures, and sells materials handling equipment to various sectors.
Why Does HY Fall Short?
Hyster-Yale Materials Handling’s stock price of $41.83 implies a valuation ratio of 7.9x forward price-to-earnings. To fully understand why you should be careful with HY, check out our full research report (it’s free).
Market Cap: $1.32 billion
With an emphasis on ethically produced products, Vital Farms (NASDAQ:VITL) specializes in pasture-raised eggs and butter.
Why Is VITL a Top Pick?
Vital Farms is trading at $29.66 per share, or 24.6x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
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