The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on. However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
The high-risk, high-reward nature of the Russell 2000 makes stock selection critical, and we’re here to guide you toward the right ones. Keeping that in mind, here are two Russell 2000 stocks that could deliver strong gains and one best left off your watchlist.
One Stock to Sell:
HA Sustainable Infrastructure Capital (HASI)
Market Cap: $4.77 billion
With a proprietary "CarbonCount" metric that quantifies the environmental impact of each dollar invested, HA Sustainable Infrastructure Capital (NYSE:HASI) is an investment firm that finances and develops climate-positive infrastructure projects across renewable energy, energy efficiency, and ecological restoration.
Why Does HASI Worry Us?
- Annual earnings per share growth of 9.7% underperformed its revenue over the last two years, showing its incremental sales were less profitable
- Below-average return on equity indicates management struggled to find compelling investment opportunities
HA Sustainable Infrastructure Capital’s stock price of $38.32 implies a valuation ratio of 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than HASI.
Two Stocks to Watch:
Astrana Health (ASTH)
Market Cap: $1.98 billion
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Are We Positive on ASTH?
- Impressive 55.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 13.2% annually over the last five years and trumped its peers
At $38.62 per share, Astrana Health trades at 13.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
CNX Resources (CNX)
Market Cap: $4.54 billion
Tracing back to operations that began in 1860, CNX Resources (NYSE:CNX) drills for and produces natural gas from underground shale formations in Pennsylvania, Ohio, and West Virginia.
Why Could CNX Be a Winner?
- Attractive asset base leads to wonderful unit economics and a premier gross margin of 68%
- EBITDA margin expanded by 1.9 percentage points over the last five years as it scaled and became more efficient
- Robust free cash flow margin of 23.4% gives it many options for capital deployment
CNX Resources is trading at $32.91 per share, or 11.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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