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 is one Russell 2000 stock that could deliver strong gains and two best left off your watchlist.
Two Stocks to Sell:
Rush Enterprises (RUSHA)
Market Cap: $5.92 billion
Headquartered in Texas, Rush Enterprises (NASDAQ: RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.
Why Are We Hesitant About RUSHA?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
At $76.44 per share, Rush Enterprises trades at 19.9x forward P/E. To fully understand why you should be careful with RUSHA, check out our full research report (it’s free).
Ziff Davis (ZD)
Market Cap: $1.92 billion
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Why Should You Dump ZD?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 9.2 percentage points
- Performance over the past five years shows each sale was less profitable, as its earnings per share fell by 7% annually
Ziff Davis’s stock price of $51.83 implies a valuation ratio of 10.1x forward P/E. Check out our free in-depth research report to learn more about why ZD doesn’t pass our bar.
One Stock to Watch:
Gevo (GEVO)
Market Cap: $415.6 million
Operating one of the largest dairy-based renewable natural gas facilities in the United States, Gevo (NASDAQ: GEVO) produces sustainable aviation fuel and other renewable hydrocarbon fuels from plant-based feedstocks like corn.
Why Does GEVO Stand Out?
- Market share has increased this cycle as its 19% annual revenue growth over the last ten years was exceptional
- EBITDA margin improvement of 6,358.1 percentage points over the last five years demonstrates its ability to scale efficiently
Gevo is trading at $1.74 per share, or 10.2x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
