The 3 Smartest Russell 2000 Stocks to Buy with $500 Right Now

Core Viewpoint - The article highlights three promising stocks from the Russell 2000 index, emphasizing their strong performance and growth potential despite the index's overall flat performance year-to-date and modest gains over the past five years [3][4]. Semrush (SEMR) - Semrush has remained flat year-to-date but has achieved a 55% increase over the past year, serving approximately 112,000 paying customers [4][5]. - The company reported an annual recurring revenue of $354.2 million in Q1 2024, reflecting a 21% year-over-year increase, with total revenue for the quarter also rising by 21% to $85.8 million [5]. - Semrush recently became profitable, posting a GAAP net income of $2.14 million, a significant turnaround from a net loss of $9.86 million in the same quarter last year [6]. Upwork (UPWK) - Upwork's stock is currently trading at a P/E ratio of 31, with revenue increasing by 19% year-over-year in Q1, and net income rising by 7% year-over-year [9]. - The company has surpassed 100,000 active Freelancer Plus subscriptions, marking a 76% year-over-year improvement, and is expected to see profit margins expand as its advertising segment grows [9][10]. - The ongoing trend of remote work is anticipated to benefit Upwork as more individuals seek flexible job opportunities [10]. Elf Beauty (ELF) - Elf Beauty has outperformed the stock market, with shares up 46% year-to-date and over 1,300% growth over the past five years [12]. - The company reported a 71% year-over-year net sales growth in Q4 FY24 and has achieved net sales growth for 21 consecutive quarters [13]. - Analysts are optimistic about Elf Beauty's continued growth into fiscal 2025, with a current rating of Strong Buy and a highest price target of $250 per share, suggesting a potential 23% upside [14].