5 Best Russell 2000 Stocks To Buy Now

In this article, we discuss 5 best Russell 2000 stocks to buy. If you want to read our detailed discussion on the performance of the Russell 2000 index, head over to 15 Best Russell 2000 Stocks To Buy Now. 

5. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 38

Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company based in Houston, Texas. The company focuses on acquiring, exploiting, developing, and exploring for crude oil, natural gas, and natural gas liquids in the Williston Basin. On May 3, Chord Energy Corporation (NASDAQ:CHRD) reported a Q1 non-GAAP EPS of $4.49 and a revenue of $896.5 million, exceeding Wall Street estimates by $0.20 and $219.81 million, respectively. It is one of the best Russell 2000 stocks to invest in. 

According to Insider Monkey’s first quarter database, 38 hedge funds were long Chord Energy Corporation (NASDAQ:CHRD), compared to 47 funds in the last quarter. Christian Zann’s Sourcerock Group is the leading stakeholder of the company, with 594,022 shares worth $80 million. 

Here is what Bernzott Capital Advisors US Small Cap Value Fund has to say about Chord Energy Corporation (NASDAQ:CHRD) in its Q3 2022 investor letter:

“Chord Energy (CHRD): Formed through the 2022 merger of Whiting Petroleum and Oasis Petroleum, the company possesses one of the largest acreages within the Williston Basin. The company’s plan to return 75% of FCF to shareholders in the form of dividends and buybacks is amongst the highest of its peer group. Synergies associated with the merger should drive further efficiencies benefitting the bottom line. The stock currently yields 3.4%.”

4. APi Group Corporation (NYSE:APG)

Number of Hedge Fund Holders: 41

Next on our list of the best Russell 2000 stocks is APi Group Corporation (NYSE:APG). APi Group Corporation (NYSE:APG) offers safety, specialty, and industrial services, operating through two segments – Safety Services and Specialty Services. The Safety Services segment provides integrated occupancy systems, including fire protection, HVAC, and entry systems. The Specialty Services segment offers infrastructure and industrial plant services, engineering, fabrication, installation, and maintenance to the energy industry. 

On May 4, APi Group Corporation (NYSE:APG) reported a Q1 GAAP EPS of $0.05 and a revenue of $1.61 million, up 9.7% year-over-year. The company’s net revenue increased by 9.7%, and its organic net revenue showed a growth of 12.1%.

According to Insider Monkey’s first quarter database, 41 hedge funds were bullish on APi Group Corporation (NYSE:APG), compared to 31 funds in the last quarter. Andreas Halvorsen’s Viking Global is the biggest stakeholder of the company, with 34 million shares worth $766.3 million. 

Bernzott Capital Advisors made the following comment about APi Group Corporation (NYSE:APG) in its second quarter 2023 investor letter:

“APi Group Corporation (NYSE:APG): The stock benefitted from solid results marked by nearly 10% revenue growth and good margin execution. The company’s recurring, inspection services-based business profile may also have helped the stock as investors embraced resiliency in the face of economic uncertainty.”

3. Chart Industries, Inc. (NYSE:GTLS)

Number of Hedge Fund Holders: 43

Chart Industries, Inc. (NYSE:GTLS) is a manufacturer and distributor of engineered cryogenic equipment used in industrial gas and clean energy markets worldwide. The company operates through four segments – Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. Chart Industries, Inc. (NYSE:GTLS) is one of the best Russell 2000 stocks to watch. 

On July 25, Chart Industries, Inc. (NYSE:GTLS) announced that it has been chosen by Dalian Clean Energy Group to supply hydrogen compression solutions for their hydrogen production project in China. The project will be executed in several phases, with an initial investment of approximately $112 million for the first phase, which includes the construction of 100 MW of solar photovoltaic and 60 MW of hydrogen production. The project is expected to be completed and operational by October 2023 and aims to generate 137 million KWH/year of green electricity and produce 2,000 tons/year of green hydrogen.

According to Insider Monkey’s first quarter database, Chart Industries, Inc. (NYSE:GTLS) was part of 43 hedge fund portfolios, compared to 55 in the last quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 650,983 shares worth $81.6 million. 

Aristotle Atlantic Large Cap Growth Strategy made the following comment about Chart Industries, Inc. (NYSE:GTLS) in its Q1 2023 investor letter:

“Chart Industries, Inc. (NYSE:GTLS) is a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Energy and Industrial Gas markets. Its unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. Chart’s customers are mainly large, multinational producers and distributors of hydrocarbon and industrial gasses. The company generates about half its sales in North America.

We see Chart Industries as a leading manufacturer of highly engineered cryogenic solutions that are used for the production and storage of industrial gasses. With the exposure to energy end markets including liquified natural gas (LNG), compressed natural gas (CNG) and hydrogen, the company has the technology to ship gas from oversupplied markets to markets that do not have access to enough energy resources. Hydrogen is gaining traction as a renewable fuel due to the focus on climate change. The recent acquisition of Howden is complementary to Chart’s existing product and service offerings.”

2. Noble Corporation Plc (NYSE:NE)

Number of Hedge Fund Holders: 45

Noble Corporation Plc (NYSE:NE) is a global offshore drilling contractor that serves the oil and gas industry. The company offers contract drilling services through their fleet of mobile offshore drilling units, which include both floaters and jackups. Noble Corporation Plc (NYSE:NE) is one of the best Russell 2000 stocks to monitor. On July 11, the company declared a $0.30 per share quarterly dividend. The dividend is payable on September 14, to shareholders of record on August 17. 

According to Insider Monkey’s first quarter database, 45 hedge funds were bullish on Noble Corporation Plc (NYSE:NE), compared to 50 funds in the last quarter. William B. Gray’s Orbis Investment Management is the largest stakeholder of the company, with 3.45 million shares worth $136.4 million. 

ClearBridge Value Equity Strategy made the following comment about Noble Corporation Plc (NYSE:NE) in its Q4 2022 investor letter:

“As mentioned, we remain very positive on energy given the structural global shortage. However, with the cost structure of shale rising from higher services costs and well productivity falling, we made the decision to pivot from shorter-cycle shale production to longer-cycle conventional oil. We believe the current environment suggests that pricing power in energy services will continue to improve while the demand for offshore oil will increase. We invested in Noble Corporation Plc (NYSE:NE), in the energy sector, an offshore drilling contractor that targets ultra-deepwater and high-specification jack up markets, which we believe will be a major beneficiary of this shift. After emerging from bankruptcy caused by the recent severe downcycle, Noble has a recapitalized balance sheet moving into a positive pricing cycle that will drive dramatic growth in earnings and free cash flow. Like other parts of energy, the nightmare of the last cycle is reinforcing capital discipline and a focus on free cash flow rather than growth. We believe this subsequent longer duration cycle is not reflected in Noble’s current stock price, and long-term performance will be supported by growing shareholder returns from dividends and buybacks while maintaining a strong balance sheet.”

1. Lantheus Holdings, Inc. (NASDAQ:LNTH)

Number of Hedge Fund Holders: 46

Lantheus Holdings, Inc. (NASDAQ:LNTH) specializes in developing, manufacturing, and marketing diagnostic and therapeutic products to diagnose and treat different diseases, including heart and cancer conditions. Lantheus Holdings, Inc. (NASDAQ:LNTH) is one of the best Russell 2000 stocks to watch. On May 4, the company reported a Q1 non-GAAP EPS of $1.47 and a revenue of $300.78 million, topping Wall Street estimates by $0.18 and $20.12 million, respectively. Revenue for the period increased 44% on a year-over-year basis. 

According to Insider Monkey’s first quarter database, 46 hedge funds were bullish on Lantheus Holdings, Inc. (NASDAQ:LNTH), compared to 44 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 1 million shares worth about $90 million. 

Carillon Eagle Small Cap Growth Fund made the following comment about Lantheus Holdings, Inc. (NASDAQ:LNTH) in its Q4 2022 investor letter:

“Lantheus Holdings, Inc. (NASDAQ:LNTH) provides imaging diagnostics, targeted therapeutics, and artificial intelligence solutions used to fight serious medical conditions. Despite another strong quarterly update, the stock came under pressure due in part to investor concerns regarding a possible deceleration of revenue growth in the company’s leading product, Pylarify, as the company seems to have penetrated most of the early adopters of this imaging agent for prostate cancer. Later in the quarter, the company announced a strategic collaboration and exclusive licensing agreement for two late-stage therapeutic products used for the treatment of metastatic prostate cancer and neuroendocrine tumors. We believe approval of these products should help offset any significant declines in revenue growth of Pylarify.”

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