The Russell 2000 (^RUT) may be overshadowed by larger indexes, but it’s full of companies with the potential to deliver high returns. A select few have the right mix of innovation, market opportunity, and execution to outperform over time.
Finding these rising stars before they break out isn’t easy, which is why we started StockStory. That said, here are three Russell 2000 stocks that could be the next breakout winners.
Remitly (RELY)
Market Cap: $4.91 billion
With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.
Why Do We Love RELY?
- Active Customers have grown by 25.8% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 163% outpaced its revenue gains
- Free cash flow margin expanded by 43.1 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Remitly is trading at $23.20 per share, or 9.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Abercrombie and Fitch (ANF)
Market Cap: $6 billion
Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.
What Makes ANF Stand Out?
- Comparable store sales rose by 5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Differentiated product assortment leads to a best-in-class gross margin of 63.2%
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $141.62 per share, Abercrombie and Fitch trades at 11.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
QuinStreet (QNST)
Market Cap: $857.4 million
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Beat the Market?
- Annual revenue growth of 45.2% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin increased by 5.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
QuinStreet’s stock price of $15.33 implies a valuation ratio of 9.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% 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.