Stock Market Crash Alert: 3 Must-Buy Russell 2000 Stocks When Prices Plunge

Core Viewpoint - Increased volatility on Wall Street presents potential investment opportunities in small-cap stocks, particularly those in the Russell 2000 index, which are often undervalued and under-researched [1][2]. Group 1: Atkore (ATKR) - Atkore provides electrical, safety, and infrastructure solutions, with a strong market presence in electrical and cable management [3]. - The company reported a 4.2% year-over-year decline in net revenue for Q1 2024, totaling $798.5 million, but still exceeded market expectations [3][4]. - Adjusted net earnings per share (EPS) decreased by 10.6% to $4.12, while management raised the fiscal 2024 adjusted EPS outlook to between $16.50 and $17.50 [4]. - ATKR stock has gained 15% year-to-date and is currently priced at 10.6 times forward earnings, with a 12-month price target of $200, indicating a potential upside of nearly 10% [4]. Group 2: Matador Resources (MTDR) - Matador Resources specializes in shale oil, focusing on the liquids-rich portions of the Wolfcamp and Bone Spring formations in the Delaware Basin [6]. - The company reported total revenue of $787.7 million for Q1 2024, a 40.5% year-over-year increase, with adjusted net income rising 14.6% to $206.2 million [6][7]. - Matador's production averaged over 149,700 barrels of oil equivalent (BOE) per day, with a bullish production outlook for 2024 projecting an average of 153,000 to 159,000 BOE [7]. - Despite a 15% year-to-date increase in MTDR stock, it remains undervalued at 8.1 times forward earnings compared to the energy sector average of over 10 times, with a median 12-month price target of $77, suggesting a potential 16% upside [7]. Group 3: iShares Russell 2000 ETF (IWM) - The iShares Russell 2000 ETF tracks the Russell 2000 Index, providing exposure to U.S. small-cap stocks and holds approximately $59 billion in assets [8][9]. - The leading sectors in the fund include Industrials (17.6%), Financials (16%), Information Technology (14.8%), Health Care (14.8%), and Consumer Discretionary (10.5%) [8]. - IWM has traded flat since the beginning of the year, with trailing price-to-earnings (P/E) and price-to-book (P/B) ratios of 15.54x and 1.9x, respectively, and a current dividend yield of 1.3% [9].