3 Russell 2000 Stocks to Buy Now: May 2024

Core Insights - The Russell 2000 index, which includes 2000 top American small-cap stocks, is essential for a comprehensive view of the US stock market [1] - Stanley Druckenmiller has taken a bullish position in IWM call options valued at $664 million, indicating confidence in small-cap growth [2] Company Summaries Super Micro Computer Inc (SMCI) - SMCI has seen a remarkable 211% return for shareholders in 2024, driven by demand for AI chips and infrastructure [4] - The stock trades at 4.3x sales and 24.5x forward earnings, with an average price target of $1,057.46, suggesting a near 20% upside [3][4] - The company has achieved a net income CAGR of 70% over five years and 126% over three years, indicating strong growth potential [4] CleanSpark (CLSK) - CleanSpark is positioned to benefit from the ongoing crypto bull run, with analysts projecting a price target range of $20.00 to $30.00, representing potential upsides of 25% to nearly 100% [8] - The company has made strides in sustainable mining, with 90% of its operations powered by carbon-free sources [9] - CLSK trades at 9.2x sales and 30.8x forward earnings, aligning with other Bitcoin miners, while Bitcoin's potential rise to $100,000 could enhance its attractiveness [9] Magnite (MGNI) - Magnite is currently undervalued, with price targets ranging from $13.00 to $20.00, indicating potential upsides of 10% to over 60% [11] - The company recently exceeded revenue estimates and formed an exclusive partnership with Netflix, expected to become its largest customer by 2025 [12] - MGNI trades at 2.5x sales and 11x forward earnings, with a strong revenue CAGR of 37%, presenting a buying opportunity before anticipated growth [13]