Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses. Navigating this part of the market can be tricky, which is why we built StockStory to help you separate the winners from the laggards. Keeping that in mind, here are three Russell 2000 stocks that don’t make the cut and some better choices instead ...

Michael M. Santiago / Getty Images Unprofitable companies have lifted the indexes that track smaller companies' shares this year. Key Takeaways Unprofitable companies in the Russelll 2000 have outpaced profitable constituents in the index. Some investors think small-caps can keep rising, citing more affordable valuations and expectations of improved earnings growth. The froth in U.S. stock markets can be seen in small companies too. The Russell 2000 index has outperformed the S&P 500 since this yea ...

American Century Investments, the $300 billion international asset manager, expanded its ETF family with the launch of two core active small-cap funds: the American Century Small Cap Growth Insights ETF (BATS:ACSG) and the American Century Small Cap Value Insights ETF (BATS:ACSV). • See what is driving ACSG stock here.The new funds aim to provide investors with benchmark-consistent exposure to small-cap stocks, blending the firm's long history of successful stock selection with the flexibility and efficienc ...

Core Insights - The article highlights the author's journey into investing, emphasizing the missed opportunity to invest in Amazon.com, Inc. over 20 years ago, reflecting on the importance of early investment decisions [1]. Group 1: Author's Background - The author, Dilantha De Silva, is an experienced equity analyst and investment researcher with over 10 years in the investment industry [1]. - Dilantha writes for various platforms including Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, and has a significant following on Seeking Alpha [1]. - His expertise covers various sectors, particularly focusing on small-cap stocks that are often overlooked by Wall Street analysts [1]. - Dilantha is a CFA Level III candidate and holds qualifications from the Chartered Institute for Securities and Investment (CISI) [1]. - He has been featured on major financial networks such as CNBC and Bloomberg, and his work has been showcased on Nasdaq and Yahoo Finance [1]. - In addition to stock analysis, Dilantha is involved in private equity transactions, including acquiring and managing businesses [1].

Core Insights - Small-cap stocks are gaining significant attention, with some stocks in the iShares Russell 2000 ETF experiencing massive gains this year, outperforming larger-cap stocks like Nvidia and Palantir [1][2]. Small-Cap Performance - The iShares Russell 2000 ETF has increased by 11.2% this year, although it still lags behind the S&P 500 [2]. - On September 18, the Russell 2000 index reached an all-time high for the first time since March 15, 2021, ending a streak of 967 trading days without a new high, which is the second longest in the index's history [3]. Notable Small-Cap Stocks - The Oncology Institute (TOI) has seen a remarkable rise of 1,064% this year, increasing from 31 cents to $3.60 per share [3]. - Better Home & Finance (BETR) and ThredUp (TDUP) also performed well, with gains of 602.6% and 578.1% respectively [7]. - ThredUp is valued at over $1.1 billion and is expected to lose 24 cents per share this year, yet its stock price has risen to $9.44 [5]. Market Dynamics - Many small-cap stocks started the year with low share prices, leading to substantial percentage increases with even small dollar gains [3]. - The average stock in the Russell 2000 index now trades for $37 per share, indicating a shift in market dynamics as small stocks rally [6].

Core Insights - The article highlights the challenges of investing in small-cap stocks, comparing ownership to holding a lottery ticket with extremely low odds of success [1] Group 1 - Small-cap stocks often flood the market with shares, leading to individual ownership positions that are minimal and barely impactful [1]

Core Insights - The Russell 2000 index reached a record high of 2467.70, marking its first closing high since 2021, driven by expectations of lower interest rates following a Federal Reserve announcement of a quarter percentage-point cut and projections for two more cuts by year-end [2][7] Group 1: Small-Cap Performance - Small-cap stocks, defined as companies with market capitalizations between $250 million and $2 billion, have been anticipated to outperform due to lower interest rates, which typically lead to higher profits and reduced financing costs [3][6] - The iShares Russell 2000 ETF (IWM) has outperformed the iShares Russell 1000 ETF (IWB) over the past three months, with returns of 15% compared to approximately 10% for larger companies [5][7] Group 2: Valuations and Earnings Outlook - As of the end of August, small-cap stocks are projected to deliver annualized returns of 8% over the next decade, significantly higher than the less than 1% expected for large-cap stocks, according to a BofA Global Research report [6] - Analysts expect small-cap companies to grow earnings at a faster rate than their large-cap counterparts in the upcoming quarters, indicating a shift from previous trends [6][7]

Core Insights - Opendoor Technologies, Inc. (NASDAQ: OPEN) has seen a remarkable increase of over 460% in its stock price this year, making it one of the best-performing stocks in 2025 [1] Company Developments - The appointment of Kaz Nejatian, former COO of Spotify, has been positively received by investors, indicating confidence in the company's leadership and future direction [1] Analyst Background - Dilantha De Silva, an experienced equity analyst with over 10 years in the investment industry, has a focus on small-cap stocks often overlooked by Wall Street analysts [1]

Core Viewpoint - Investors are anticipating a potential cut in the federal-funds rate by the Federal Open Market Committee, which may act as a catalyst for small-cap U.S. companies, particularly due to their focus on domestic sales and the potential for reduced borrowing costs [1]. Group 1: Market Performance - Small-cap stocks have underperformed compared to large-cap stocks this year and over the past five years, but the situation may change with expected interest rate cuts [1]. - The S&P 500 has outperformed the S&P Small Cap 600 over the past five years, although the small-cap index led for a significant portion of that period [5]. Group 2: Investor Sentiment - Jay Woods, chief global strategist at Freedom Capital Markets, suggests that excessive volatility may follow the Federal Reserve Chair's press conference, but any potential selloff in small-caps could lead to a rally later in the year [2]. - Momentum in the Russell 2000 index could indicate a stronger bull market than anticipated if it breaks out to new highs [2]. Group 3: Index Criteria and Screening - The S&P Small Cap 600 requires companies to show four consecutive quarters of profitability for initial inclusion, making it a more conservative benchmark compared to the Russell 2000 [5]. - A screening of the S&P Small Cap 600 highlights companies with rapid revenue growth and those expected to grow quickly through 2027 [4].