Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are two Russell 2000 stocks that could deliver strong gains and one best left off your watchlist.
One Stock to Sell:
Hope Bancorp (HOPE)
Market Cap: $1.61 billion
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Why Should You Dump HOPE?
- Net interest income was flat over the last five years, indicating it’s failed to expand this cycle
- Earnings per share were flat over the last five years and fell short of the peer group average
- Flat tangible book value per share over the last two years suggest it must find different ways to enhance shareholder value during this cycle
Hope Bancorp’s stock price of $12.55 implies a valuation ratio of 0.7x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Fluence Energy (FLNC)
Market Cap: $1.79 billion
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Will FLNC Outperform?
- Annual revenue growth of 33.8% over the past five years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 36.4% annually over the last four years, massively outpacing its peers
- Negative free cash flow margin has improved over the last five years, showing the company is one step closer to financial self-sufficiency
Fluence Energy is trading at $13.53 per share, or 386x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Alignment Healthcare (ALHC)
Market Cap: $4.26 billion
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Is ALHC a Good Business?
- Annual revenue growth of 47.1% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 27.7% annually
- Free cash flow margin is now positive, showing the company is at an important crossroads
At $20.60 per share, Alignment Healthcare trades at 45.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
