3 Russell 2000 Stocks We Find Risky

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. That said, here are three Russell 2000 stocks that don’t make the cut and some better choices instead.

USANA (USNA)

Market Cap: $274.9 million

Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.

Why Does USNA Worry Us?

1. Sales tumbled by 1.2% annually over the last three years, showing consumer trends are working against it
2. Smaller revenue base of $913.4 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 32.9% annually, worse than its revenue

USANA’s stock price of $14.85 implies a valuation ratio of 15x forward P/E. Check out our free in-depth research report to learn more about why USNA doesn’t pass our bar.

Xponential Fitness (XPOF)

Market Cap: $266.3 million

Owner of Club Pilates, Stretch Lab, BFT and Pure Barre, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.

Why Is XPOF Risky?

1. Muted 19.5% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $5.55 per share, Xponential Fitness trades at 10.4x forward P/E. Dive into our free research report to see why there are better opportunities than XPOF.

HA Sustainable Infrastructure Capital (HASI)

Market Cap: $4.89 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 Do We Think Twice About HASI?

1. Underwhelming 6.6% return on equity reflects management’s difficulties in finding profitable growth opportunities

HA Sustainable Infrastructure Capital is trading at $39.12 per share, or 12.5x forward P/E. Read our free research report to see why you should think twice about including HASI in your portfolio.

Stocks We Like More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.