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.
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 two Russell 2000 stocks that could be the next big thing and one that may struggle to keep up.
One Stock to Sell:
EverQuote (EVER)
Market Cap: $701.8 million
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Are We Wary of EVER?
- Excessive marketing spend signals little organic demand and traction for its platform
EverQuote’s stock price of $23.35 implies a valuation ratio of 5.7x forward EV/EBITDA. If you’re considering EVER for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Boot Barn (BOOT)
Market Cap: $5.31 billion
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.
Why Does BOOT Stand Out?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 6.3% growth over the past two years
- Free cash flow margin jumped by 5.6 percentage points over the last year, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $164.55 per share, Boot Barn trades at 20.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Riley Exploration Permian (REPX)
Market Cap: $749.2 million
Operating in counties where legacy oil fields have been producing since the early 1900s, Riley Exploration Permian (NYSE: REPX) drills for and produces oil and natural gas from horizontal wells in the Permian Basin of West Texas and New Mexico.
Why Are We Bullish on REPX?
- Annual revenue growth of 30.8% over the past eight years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 76.6%
- Strong free cash flow margin of 17.3% enables it to reinvest or return capital consistently
Riley Exploration Permian is trading at $33.25 per share, or 4.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
