7 Russell 2000 Stocks to Buy for the Next Bull Run: February 2024
As 2023 wrapped up, Russell 2000 stocks, mirroring the dynamics of small-to-mid-cap companies, showed resilience, outperforming their initial stance. The iShares Russell 2000 ETF (NYSEARCA:IWM), a key barometer for these stocks, boasts over $60 billion in assets and a robust daily trading volume surpassing 40 million, setting an impressive stage for these agile market players.
Entering 2024, the spotlight intensifies on Russell 2000 stocks. Despite posting a commendable 12.9% average return last year, they trailed behind the S&P 500 and NASDAQ. However, currents are shifting, hinting at a potential record run for these stocks. Their inherent volatility and higher growth prospects, juxtaposed with increased risk, make them intriguing, especially as investors scrutinize indices like the Russell 2000 to navigate the broader market’s pulse and refine their investment strategies.
So, here are 7 Russell 2000 stocks poised for investors’ portfolios, ready to mark their trajectory in an evolving market landscape.
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Fluor (FLR)
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Fluor Corporation (NYSE:FLR) is capitalizing on the construction boom in North America, with its share price surging by 5.92% over the past year. The company’s expertise in constructing large facilities has attracted significant contracts, including a prestigious role in the second stage of BHP Billiton’s (NYSE:BHP) potash factory in Canada. This deal, along with a contract to develop Sweden’s first large-scale sodium-ion battery plant with Altris AB, underscores Fluor’s strength.
Moreover, Fluor’s recent financial results underscore its robust market position. The company’s revenue climbed to $3.96 billion, marking a 9.72% increase year-over-year (YOY) and surpassing expectations by $132.9 million. Impressively, earnings per share (EPS) reached $1.02, exceeding forecasts by 45 cents.
This financial health is further highlighted by a shift in its backlog, now 70% reimbursable, up from 58% the previous year. Additionally, TipRanks analysts view FLR as a ‘moderate buy,’ predicting an 11.75% upside potential, making it an attractive choice for investors.
Celsius Holdings (CELH)
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Celsius Holdings (NASDAQ:CELH) has rapidly ascended in the energy drink market, securing its spot as the third-largest seller in the U.S. and boosting its share price by 70% over the past year. The company is pushing boundaries by venturing into international markets, including Canada, the United Kingdom, and Ireland, with PepsiCo (NASDAQ:PEP) and Suntory Beverage & Food Great Britain and Ireland (OTCMKTS:STBFY) as its key distribution partners.
Financially, the company reported a staggering revenue of $384.76 million in the latest quarter, marking a 104.4% surge YOY and eclipsing forecasts by $33.22 million. Net income showed a phenomenal 146.15% increase to $83.95 million, and EPS were 30 cents, surpassing expectations by 13 cents.
Furthermore, TipRanks analysts are buoyant about Celsius’s prospects, awarding it a ‘strong buy’ rating and projecting a 34.38% upside potential. Celsius’s strategic global expansion and impressive financial performance signal a trajectory energizing its market presence and shareholder value.
ACM Research (ACMR)
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ACM Research (NASDAQ:ACMR), a pivotal supplier of wet processing technologies for semiconductors, has seen its stock surge by 31.6% over the past year, driven by its customer-focused approach and strategic global growth, especially in the Chinese semiconductor sector. Its dominance in China is undeniable, with nearly all local semiconductor manufacturers utilizing ACM’s innovative tools. Additionally, the company’s Shanghai unit is set to fortify its financial muscle, eyeing a private offering to raise up to $625 million for research, capital expenditures, and operational needs.
Financially, the latest quarter witnessed a revenue hike to $168.57 million, up 26.07% YOY, with record shipments worth $213 million, a 31% increase. EPS also outperformed, hitting 57 cents and exceeding expectations by 23 cents.
Furthermore, TipRanks analysts assign ACM Research a ‘strong buy’ rating and anticipate a robust 66.26% upside potential. This projection reflects confidence in ACM’s strategic market penetration and its continuous commitment to technological advancement and fiscal growth.
Crocs (CROX)
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Crocs (NASDAQ:CROX) has made a remarkable comeback, turning heads in the fashion world post-pandemic. Not only has the company diversified its lineup with slippers, slides, and boots, but it has also embarked on unique collaborations. Its recent partnership with McDonald’s (NYSE:MCD) introduces footwear and charms infused with the fast-food giant’s iconic motifs. Moreover, Crocs is speeding into the racing arena, announcing an exhilarating licensing partnership with NASCAR, merging high-octane excitement with its renowned comfort.
Financially, Crocs is striding confidently. The company reported a robust revenue of $1.05 billion in the latest quarter, marking a 6.15% YOY growth. EPS reached $3.25, topping expectations by 12 cents, while net income rose to $177.02 million, a 4.53% increase YOY.
Furthermore, analysts from TipRanks are bullish, rating CROX as a ‘strong buy’ and forecasting a promising 28.13% upside potential. This confidence is rooted in Crocs’ strategic collaborations and consistent financial performance, showcasing the brand’s dynamic market presence and growth trajectory.
Immunovant (IMVT)
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Immunovant (NASDAQ:IMVT) is transforming the biopharmaceutical field with innovative monoclonal antibodies for autoimmune diseases. The company’s cutting-edge anti-neonatal Fc receptor (anti-FcRn) technology serves over 2 million people affected by IgG autoantibody-related conditions. Driven by the promising potential of batoclimad, its leading candidate in four therapeutic areas, the firm’s stock soared by 90.98% over the past year.
Recently, batoclimad’s Phase 2 trial demonstrated promising outcomes in treating Graves’ disease, enhancing Immunovant’s standing in the sector. Moreover, the company’s commitment shines through its Phase 1 trial of IMVT-1402, thoroughly examining its safety and efficacy. Early Phase 1 results indicate IMVT-1402’s potential to lead its class, reflecting Immunovant’s strong research and development prowess.
Additionally, Immunovant stands financially strong with a pro forma cash reserve of approximately $737 million, complemented by an EPS that exceeded market expectations by 3 cents. TipRanks analysts echo this positive sentiment, assigning IMVT a ‘strong buy’ rating with a promising 47.7% upside potential.
Uranium Energy Corp (UEC)
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Uranium Energy Corp. (NYSE:UEC) is carving a distinguished niche in the energy sector, marked by a stellar 131.25% surge in share price over the past six months. The momentum was sparked by a significant $17.85 million deal with the U.S. Department of Energy early in 2023, bolstering its industry standing. Further reinforcing its progressive stance, UEC recently partnered with TerraPower, aiming to supply uranium fuel for the groundbreaking Natrium Reactor, a testament to its commitment to innovative nuclear energy solutions.
Moreover, UEC’s successful metallurgical drill program at the Roughrider Project unveiled high uranium grades, marking it as a key asset with potential for expansion. Capping off a triumphant year, UEC reported a record-breaking $163.95 million in revenues for 2023, translating to a substantial $49.60 million gross profit. This financial success, coupled with a strong buy recommendation from TipRanks analysts and a projected 12.04% stock upside, underscores UEC’s robust market position and promising trajectory in the evolving energy landscape.
Immunogen (IMGN)
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ImmunoGen (NASDAQ:IMGN) is reshaping the oncology landscape from its base in Waltham, Massachusetts, witnessing an impressive 494.7% surge in share price over the past year. The biotech firm’s groundbreaking antibody-drug conjugates, notably its flagship cancer therapy Elahere, caught AbbVie’s (NYSE:ABBV) eye, leading to a strategic acquisition move that promises to bolster ImmunoGen’s standing in tumor treatment.
Clinically, ImmunoGen stands out with its pivekimab triplet, a groundbreaking therapy demonstrating significant promise in treating acute myeloid leukemia (AML). These results fuel optimism for enhanced patient outcomes in the fight against cancer, highlighting the company’s dedication to leading-edge cancer treatment. Financially, ImmunoGen’s performance is robust, with a staggering 637.7% increase in quarterly revenue, reaching $113.43 million. EPS outperformed expectations by 6 cents.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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