3 Russell 2000 Stocks to Buy on the Dip: June 2024

Group 1: StoneCo (STNE) - StoneCo is a financial services company specializing in payments software, serving approximately 3.5 million clients, primarily small and mid-sized firms [3] - The company's revenue has significantly increased from $821 million in 2021 to $2.3 billion in 2023, indicating strong business growth [4] - Analysts project a 32% increase in StoneCo's earnings per share this year to $1.28, with the stock currently trading at less than 10 times forward earnings [15] Group 2: Bank of Hawaii (BOH) - Bank of Hawaii is one of the largest banks in Hawaii, facing minimal competition with only seven banking institutions serving the state [6] - The stock has shown long-term growth, rising from $16 in 2000 to nearly $100 in 2020, and currently offers a generous dividend yield of 5.0% [7] - Despite a 21% year-to-date decline in 2024, the stock presents a buying opportunity due to its low valuation and high dividend yield [8] Group 3: Duckhorn Portfolio (NAPA) - Duckhorn Portfolio focuses on upscale and luxury wine brands, including Decoy, Goldeneye, Duckhorn, Calera, and Kosta Browne [19] - The company has faced challenges due to excess inventory and overplanting in the wine industry, leading to a significant drop in NAPA stock value since its 2021 IPO [9][20] - Duckhorn's recent acquisition of BrownForman's Sonoma-Cutrer wine business is expected to enhance its financial performance, with NAPA stock currently trading at 13 times forward earnings, presenting a bargain opportunity [21]