The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns. A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Spotting the best opportunities in the Russell 2000 takes research, and we’re here to do the heavy lifting for you. That said, here are three Russell 2000 stocks that could be the next big thing.
Impinj (PI)
Market Cap: $3.39 billion
Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ:PI) is a maker of radio-frequency identification (RFID) hardware and software.
Why Does PI Catch Our Eye?
- Annual revenue growth of 11.9% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 38.1% outpaced its revenue gains
- Free cash flow margin expanded by 23.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Impinj is trading at $117 per share, or 73x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
AeroVironment (AVAV)
Market Cap: $12.97 billion
Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Do We Watch AVAV?
- Annual revenue growth of 23.2% over the past two years was outstanding, reflecting market share gains this cycle
- Exciting sales outlook for the upcoming 12 months calls for 144% growth, an acceleration from its two-year trend
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 63.4% annually
At $263.71 per share, AeroVironment trades at 68.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Westamerica Bancorporation (WABC)
Market Cap: $1.34 billion
Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ:WABC) provides banking services to individuals and small businesses throughout Northern and Central California.
Why Could WABC Be a Winner?
- Solid 9.7% annual net interest income growth over the last four years indicates its offerings are gaining share
- Efficiency ratio improved by 11.4 percentage points over the last four years as it scaled
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Westamerica Bancorporation’s stock price of $51.12 implies a valuation ratio of 1.4x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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