11 Best Russell 2000 Stocks to Buy According to Wall Street Analysts

5. Avient Corporation (NYSE:AVNT)

Upside potential: 75.88%

No of hedge funds: 28

Headquartered in Ohio, a specialty materials company, Avient Corporation (NYSE:AVNT) provides polymer solutions, colorants, and additives to a wide range of sectors, including healthcare, automotive, and packaging. The company was initially founded through the rebranding of PolyOne and the acquisition of Clariant’s masterbatch business. Avient Corporation’s (NYSE:AVNT) innovations are primarily focused on sustainability, resulting in products such as bio-based resins that are well-received among customers in the shift toward circular materials.

Though comparatively lower than any of the other entrants on our list, the company’s EPS growth of 1.81% for the past five years remains positive and suggests a continued position in the market for specialty materials and sustainable polymer solutions. Even in challenging markets like Europe, the Middle East, and Africa, Avient Corporation (NYSE:AVNT) has achieved organic revenue growth in 2024. In Q4 2024, the company also announced a 5% increase in dividends, marking the 14th year of consecutive growth. The breakthrough innovation in its Dyneema portfolio provides the company with significant advancements in ballistic protection, which could be translated to achieve the 2025 guidance: adjusted EBITDA of $540 to $570 million.

The non-cash impairment charge, owing to the unimplemented S/4 Hana ERP system, amounted to $71 million, which brought down the value of the stock but caused the upside potential to rise to 75.88%. Additionally, with 28 hedge funds reflecting moderate confidence in this Russell 2000 stock, it has gained a Buy rating from analysts.