In this article, we will be looking into the 11 best Russell 2000 stocks that have garnered recommendations from Wall Street analysts.
Since President Trump announced new tariffs, the U.S. stock market has been steadily declining. The Wall Street Journal has estimated the loss to be around $6.6 trillion. Many large economies like China and the EU have started retaliating against these new rates, sparking a global trade war and making investors scramble to make sense of the chaos.
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Is this a buying opportunity or a trap? This is the question investors, market experts, and analysts are currently asking themselves. While social media is buzzing with calls to buy the dip, experts call the attempts to time the market a fool’s errand. Predicting market moves is impossible without sheer luck, and when investors make their decisions by relying on such luck, they also inherit the huge risk accompanying it. Waiting on the sidelines can be painful, too, since some experts strongly believe that the best returns follow the most significant dips. To use the opportunity, however, investors need disciplined strategies backed by valuable information regarding the market and the stocks.
Combining the strategy with credible information, we have compiled a list of the 11 best Russell small-cap stocks that income-seeking investors may be interested in buying. Though mega-cap stocks dominate the headlines, small-cap companies in the Russell index also quietly steal the spotlight. These companies, often called America’s economic backbone, are domestically focused, which prevents them from taking on the full impact of tariff crossfires. Also, thanks to their agility and growth potential, small caps have a history of outperforming large caps during early-cycle recoveries. The consecutive rate cuts by the Fed to counter recession risks this year could also favor these stocks since low borrowing cost leads to progress in the companies’ expansion plans.
Understanding their potential, Wall Street analysts are combing through the Russell small-cap companies to find valuable stocks that incorporate resilience and growth. Amidst the growing uncertainties surrounding the mid-caps and even large-caps, small-caps in the Russell index, backed by the analysts’ ratings, might prove to be a safer harbor for investors.
Hence, for investors to pepper their portfolio with the best small caps in the market, we have gone through Wall Street’s top recommendations and brought you 11 Russell small-cap stocks that analysts believe are primed to thrive in this volatile climate.
Our Methodology
We have put together our list by following a few criteria. Primarily, all the stocks we have considered for our list are small caps and part of the Russell 2000. We have filtered out those stocks that do not have a strong Buy rating from the analysts. The criteria ensured that all the picks in our list have future growth potential, benefiting income-seeking investors. The average volume has been set at 100,000 to gather stocks with strong liquidity.
Additionally, we have included only those stocks with positive earnings per share (EPS) over the past five years, which provides a historical overview of the companies’ growth. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 7, 2025. To rank the stocks, we used the hedge funds in the Insider Monkey database as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Forestar Group Inc. (NYSE:FOR)
Upside potential: 51.73%
No of hedge funds: 16
Forestar Group Inc. (NYSE:FOR) is a residential and real estate development company focused on lot development for homebuilders. The company runs its operations primarily across the southern and southeastern United States from its headquarters in Texas. It functions as a strategic land supplier for D.R. Horton, its majority shareholder in these regions. The company takes on its competitors in the market with strong capital backing and geographic diversification. Their growth model is centered around land acquisition discipline and scalable development execution.
Despite a slow recovery after the pandemic, the real estate market notably favored the company, with a 38.51% EPS gain over five years. Delivering over 2300 lots, Forestar Group Inc. (NYSE:FOR) generated approximately $250.4 million in the first quarter of 2025. The number of owned lots has also increased nearly twice that of the previous year, reaching the highest number since 2020. Government delays are extending the cycle time at an unprecedented rate. However, significant investment in land acquisitions, with a 50% increase in the last quarter, is expected to reflect positively on the company’s revenue in 2025.
Institutional interest in Forestar Group Inc. (NYSE:FOR) stands low compared to other Russell 2000 stocks on our list, with only 16 hedge funds holding stakes. However, an upside potential of 51.73% and a Buy rating from analysts increase its appeal among investors looking to buy within the housing development segment.
10. The Brink’s Company (NYSE:BCO)
Upside potential: 50.33%
No of hedge funds: 20
The Brink’s Company (NYSE:BCO), headquartered in Virginia, is a global leader in secure logistics and cash management solutions. The company offers armored transportation, ATM servicing, vault outsourcing, and international currency logistics services. The Brink’s Company (NYSE:BCO)’s client base is comprised of financial institutions, retailers, and government agencies. With a global presence across over 100 countries, the company gains a competitive edge through scale and technology-enabled tracking systems.
With nearly 45% EPS growth in the past five years, The Brink’s Company (NYSE:BCO) has historically proven itself as one of the best Russell 2000 stocks in the secure logistics and cash management solutions market segment. Additionally, the company reported strong organic revenue growth of 12% for the full year of 2024 and 11% in Q4. They have also demonstrated strong cash generation, with $426 million in cash from operations and $400 million in free cash flow for 2024. The Brink’s Company (NYSE:BCO) incurred a $38 million charge concerning a legal resolution. However, it has cleared the legal issues with the DOJ and FinCEN, bringing the management focus to achieving 2025’s Q1 revenue guidance of $1.2 to $1.25 billion.
The Brink’s Company (NYSE:BCO) has gained a Buy rating from analysts and an attractive upside potential of 50.33%. Twenty hedge funds are backing the company, according to Insider Monkey’s Q4 2024 database, indicating moderate confidence in the stock.
9. ACM Research, Inc. (NASDAQ:ACMR)
Upside potential: 87.99%
No of hedge funds: 23
California-based company, ACM Research, Inc. (NASDAQ:ACMR) is developing and manufacturing wafer-cleaning equipment for the global semiconductor industry. The company’s proprietary Ultra-Clean technology serves front-end and advanced packaging processes with a significant foothold in Asia. ACM Research distinguishes itself from its competitors through innovative single-wafer cleaning systems optimized for advanced nodes. The company’s customization capabilities and cost efficiency appeal to leading foundries and device manufacturers, thus making it a leader in semiconductor process equipment development.
Demand for the company’s products has been high in the prior years, as indicated by the 36% growth in the EPS over the past 5 years. The performance of ACM Research, Inc. (NASDAQ:ACMR) has surpassed over 70% of its peers in the industry. With significant revenue growth, particularly in China, the company is expanding into other global markets. The company has further reduced dependency on U.S.-sourced components by successfully localizing its supply chain. For the fiscal year 2025, the company anticipates revenue between $850 million and $950 million. However, China’s high revenue concentration (99% of total revenue) may expose the stock to tariffs and tariff tension between countries.
Analysts have assigned ACM Research, Inc. (NASDAQ:ACMR) a Buy rating. Insider Monkey database noted 23 hedge funds backing the stock at the end of Q4 2024, suggesting moderate institutional confidence in the company. With an estimated upside potential of 87.99%, the company ranks on our list of best Russell 2000 stocks.
8. A-Mark Precious Metals, Inc. (NASDAQ:AMRK)
Upside potential: 80.27%
No of hedge funds: 24
A-Mark Precious Metals, Inc. (NASDAQ:AMRK), based in El Segundo, California, is a full-service precious metals trading firm. The company focuses on wholesale and retail distribution of gold, silver, platinum, palladium, and similar metals. Operating through segments such as Trading, Direct-to-Consumer, and Secured Lending, the company uses its vertical integration and diversified revenue streams to set itself apart from its competitors like JM Bullion. Their customer base is comprised of mints, dealers, and individual investors.
A-Mark Precious Metals, Inc. (NASDAQ:AMRK) delivered a stellar 78.46% EPS growth in five years, suggesting a notable demand and consecutive revenue growth. The company plans to expand further into the collectible coin market through a few acquisitions, like Stack’s Bowers Galleries, AMS Holding, LLC, and Pinehurst Coin Exchange, Inc. On April 4, 2025, along with an announcement of the quarterly cash dividend of $0.20 per share, A-Mark Precious Metals, Inc. (NASDAQ:AMRK) also reported the closing of a 90% acquisition of AMS Holding, LLC (AMS). With this acquisition, the company aims to increase its revenue further in 2025.
With 24 hedge funds invested as per Insider Monkey’s Q4 2024 database, the company has gained moderate institutional interest. Though the stock has declined by 18%, the upside potential of 80.27% and the Buy rating from analysts turn it into a high-performing, undervalued Russell 2000 stock.
7. Blue Bird Corporation (NASDAQ:BLBD)
Upside potential: 62.04%
No of hedge funds: 25
Georgia-based company, Blue Bird Corporation (NASDAQ:BLBD) manufactures school buses, including electric and propane-powered models. The company focuses on serving public and private educational institutions across North America, where it maintains a strong brand legacy in student transportation. Despite tough competitors like Thomas Built Buses and IC Bus, Blue Bird Corporation (NASDAQ:BLBD) accumulated market share through its early adoption of clean-energy drivetrains. Along with government incentives, the growing demand for sustainable transit solutions enables the company to thrive in the school bus industry. It is one of the best Russell 2000 stocks on our list.
Over the past five years, Blue Bird Corporation (NASDAQ:BLBD) has garnered a 28.64% EPS surge, demonstrating its revenue-earning capabilities. Notably, the company has performed well in the alternative-powered bus market, delivering over 130 electric-powered buses in the first quarter of 2025 ahead of schedule. The company also has a significant backlog of approximately 1,000 EV buses. It reflects the high demand for the company’s cleaner transportation solutions. In its first-quarter results, the company has reaffirmed net revenue ranging between $1.4 billion and $1.5 billion as full-year 2025 guidance.
Institutional interest in Blue Bird Corporation (NASDAQ:BLBD) is moderate, with 25 hedge funds in Insider Monkey’s database having invested in the company, as of Q4 2024. The Buy rating from analysts and an upside potential of 62.04% indicate the stock is a worthy investment for investors wanting to solidify their portfolio with a Russell 2000 stock.
6. Haemonetics Corporation (NYSE:HAE)
Upside potential: 73.98%
No of hedge funds: 28
A global healthcare company, Haemonetics Corporation (NYSE:HAE) specializes in blood and plasma collection, processing, and transfusion technologies. The company’s core products, automated blood collection systems, surgical cell salvage devices, and plasma separation platforms, have a notable demand among hospitals, blood centers, and plasma providers. Headquartered in Massachusetts, the company thrives in the blood banking and healthcare sector using its data integration capabilities and strong regulatory compliance.
Haemonetics Corporation (NYSE:HAE)’s strong emphasis on efficiency and patient safety increased its position in the industry, leading to 17.09% EPS growth across five years. In its most recent quarter, the company recorded a 4% increase in revenue. Technology upgrades and new long-term agreements with BioLife and Grifols have increased the company’s market share in the U.S. and Europe plasma segment. The divestiture of the whole blood business is expected to provide Haemonetics Corporation (NYSE:HAE) access to resources with higher-margin capabilities, which could translate to a 3-5% revenue growth in 2025.
With 28 hedge funds invested, the company has accumulated moderate institutional interest. Along with a Buy rating, analysts have estimated an upside potential of 73.98%, recognizing Haemonetics Corporation (NYSE:HAE) as one of the best Russell 2000 stocks for investments.
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.
4. Boot Barn Holdings, Inc. (NYSE:BOOT)
Upside potential: 90.88%
No of hedge funds: 29
Boot Barn Holdings, Inc. (NYSE:BOOT) operates a nationwide retail chain focusing on western and work-related apparel, footwear, and accessories. Headquartered in California, the company targets lifestyle and occupational segments in both rural and urban areas. The company’s competitive advantage is brand exclusivity, store expansion strategy, and a growing e-commerce presence. Boot Barn Holdings, Inc. (NYSE:BOOT) captures the rural economic trends through its vertically integrated private-label products, thereby increasing its resilience to broader retail sector volatility.
The Western-inspired retail strategy of the company has delivered a 28.81% EPS growth over the past five years. In the last quarter, the company opened 13 new stores to meet the rising demands. It brought the total number of units to 39, with a plan to open 21 more in the next quarter. The consolidated same-store sales growth saw an upward 8.6% in the last quarter as well. As per its 2025 guidance, Boot Barn Holdings, Inc. (NYSE:BOOT)’s anticipated total sales stand between $1.908 billion and $1.918 billion (15% higher than 2024). However, with 25% of its orders coming from Mexico, the company may face risks from tariffs.
Holding a Buy rating, the company has a striking upside potential of 90.88%. The stock is backed by 29 hedge funds, according to Insider Monkey’s Q4 2024 database, making it one of the best Russell 2000 stocks in consumer apparel and specialty retail.
3. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Upside potential: 51.31%
No of hedge funds: 35
A commercial-stage biopharmaceutical company, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is focused on developing and distributing pharmaceutical products for rare neuromuscular and neurological diseases. Their flagship product, Firdapse, treats Lambert-Eaton Myasthenic Syndrome (LEMS). Continuing research on the product further targets orphan indications. Against heavy competitors like Sarepta in the market, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) succeeds through orphan drug exclusivity and targeted R&D investments. Regulatory incentives and strategic acquisitions give the company a competitive edge in underserved therapeutic categories.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) has recorded 34.27% EPS growth over five years, heavily contributed by the demand for its flagship product, Firdapse, in the market. The strong commercial performance has led to a 23.5% growth in total revenue, reaching $491.7 million in 2024. The revenue includes a $2.1 million milestone payment earned by DyDo Pharma, the sublicensee of Catalyst for Firdapse in Japan. Having gained approval to commercialize the product, the company expects sales to grow in Japan soon. Additionally, AGAMREE, the new product launched in March 2024 for treating Duchenne muscular dystrophy, is projected to deliver double the revenue, contributing close to 20% of the expected overall turnover in 2025.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) manages to acquire the support of 35 hedge funds at the end of Q4 2024, raising its institutional interest. Having assigned a Buy rating, analysts have forecasted a 51.31% upside, ensuring its entry into our list of best Russell 2000 stocks.
2. Dycom Industries, Inc. (NYSE:DY)
Upside potential: 50.40%
No of hedge funds: 37
Headquartered in Florida, Dycom Industries, Inc. (NYSE:DY) offers specialty contracting services to the telecommunications and utility sectors, particularly for broadband infrastructure development. Their engineering, construction, and maintenance services have gathered a notable customer base across North America. The long-term client relationships with major telecom providers provide a competitive edge over peers like MasTec and Quanta Service. Aligning with national broadband expansion initiatives, the business operations of Dycom Industries, Inc. (NYSE:DY) can support large-scale fiber-optic network rollouts across various geographies.
EPS growth of 34.51% over the past five years indicates that the ongoing infrastructure expansion has considerably benefited the company. In the last quarter of 2024, the company generated revenue of $1.085 billion, nearly 14% higher than the previous year. During the period, Dycom Industries, Inc. (NYSE:DY) also demonstrated its commitment to increasing shareholder returns through a new $150 million stock repurchase program. The high revenue concentration from the company’s top 5 customers presents a risk. However, in 2025, the dependency was reduced from 66% to 55% through diversification of the customer base. Also, the company has a substantial backlog of $4.6 billion, which is expected to be completed by the end of 2025.
With 37 hedge funds on board at the end of Q4 2024, Dycom Industries, Inc. (NYSE:DY) benefits from high institutional interest. The Buy rating from the analysts provided, alongside a 50.40% upside forecast, turns the company into one of the top Russell 2000 stocks.
1. Chart Industries, Inc. (NYSE:GTLS)
Upside potential: 81.77%
No of hedge funds: 47
A Georgia-based company, Chart Industries, Inc. (NYSE:GTLS) designs and manufactures cryogenic equipment and process technologies for liquefied gases. Serving energy, industrial gas, and biomedical sectors. The company’s product portfolio includes storage tanks, heat exchangers, and hydrogen infrastructure components. Chart Industries, Inc. (NYSE:GTLS) distinguishes itself from its competitors, like Linde, through its innovative clean energy solutions, including LNG, hydrogen, and carbon capture technologies. Their business strategy involves acquisition, which allows the company to gain a global manufacturing footprint.
The company demonstrates its significant revenue-generating capabilities with 25.71% EPS growth over the past five years. Part of the growth is attributed to the increase in orders, which specifically rose to 29.4% in the last quarter. Chart Industries, Inc. (NYSE:GTLS) also saw strong performance in its Heat Transfer Systems segment during the quarter, with the LNG project driving the orders to a record high. The commercial pipeline holds $24 billion in business opportunities, which have not yet been backlogged. Tapping into this growth potential, the company may achieve its revenue guidance of $4.65 billion to $4.85 billion for 2025.
The high upside potential of 81.77% and a Buy rating from analysts provide an upward trend to its potential investor base. Backed by 47 hedge funds, as per Insider Monkey’s Q4 2024 database, the institutional interest for this Russell 2000 stock also stands high.
Overall, Chart Industries, Inc. (NYSE:GTLS) ranks first among the 11 best Russell 2000 stocks to buy, according to Wall Street analysts. While we acknowledge the potential of GTLS, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GTLS but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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