The Top 3 Russell 2000 Stocks to Buy in April 2024

Core Viewpoint - The article discusses the relevance of top Russell 2000 stocks amidst the dominance of larger companies in the S&P 500, highlighting potential investment opportunities in smaller-cap stocks that may offer significant gains [1]. Group 1: Russell 2000 Overview - The Russell 2000 index includes the smallest 2000 companies in the Russell 3000, providing insights into U.S. small-cap stocks, which are generally more volatile but can present exciting investment opportunities [1]. - The performance of Russell 2000 stocks is contrasted with the 'Magnificent Seven' stocks that have driven market gains, suggesting a potential shift in focus back to smaller companies [1]. Group 2: Sprouts Farmers Market - Sprouts Farmers Market (NASDAQ:SFM) had a market cap of $6.74 billion in October 2013, which fell to $2.25 billion seven years later, but has since rebounded to over $6.65 billion, illustrating the volatility and recovery potential of Russell 2000 stocks [2]. Group 3: LiveRamp (RAMP) - LiveRamp (NYSE:RAMP) is a leader in omnichannel advertising, providing a comprehensive platform for marketing, analytics, and customer identity management, with a focus on privacy and compliance [3]. - The company has shown strong growth, beating earnings estimates in six of the last seven quarters, and has improved its trailing twelve-month losses by 88% to negative $14 million [4]. - LiveRamp's levered free cash flows have increased by 54% year-over-year, significantly higher than the sector median, with analysts projecting a 53% upside from current price levels [4]. Group 4: SkyWest (SKYW) - SkyWest (NASDAQ:SKYW) has rebounded strongly post-pandemic, with a 210% increase in stock value last year, outperforming the S&P 500 by 186% [6]. - The company has returned to positive sales growth, with Q1 revenues of $804 million, a 16.2% year-over-year increase, and an EPS of $1.45, beating estimates by 26 cents [7]. - Despite its growth, SkyWest stock trades at just 0.86 times forward sales estimates, which is 41% lower than the sector median, indicating potential undervaluation [7]. Group 5: ACM Research (ACMR) - ACM Research (NASDAQ:ACMR) is crucial in semiconductor fabrication, specializing in wafer cleaning and wet processing, which enhances the quality and efficiency of semiconductor manufacturing [8]. - The stock has seen a remarkable 431% growth over the past five years, with nearly 200% increase last year, supported by a 52% average increase in sales during the same period [9]. - ACM's net income margins have consistently exceeded 13%, indicating strong business performance and positive future outlook due to favorable industry trends [9].