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.
Discovering tomorrow’s winners today is tough, but that’s exactly why we created StockStory. That said, here are three Russell 2000 stocks that could be the next breakout winners.
Urban Outfitters (URBN)
Market Cap: $5.82 billion
Founded as a purveyor of vintage items, Urban Outfitters (NASDAQ: URBN) now largely sells new apparel and accessories to teens and young adults seeking on-trend fashion.
Why Does URBN Stand Out?
- Store expansion strategy is justified by its healthy same-store sales
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.6% growth over the past two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 47.3% exceeded its revenue gains over the last three years
At $64.98 per share, Urban Outfitters trades at 11.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Gorman-Rupp (GRC)
Market Cap: $1.6 billion
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE: GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Do We Like GRC?
- Market share has increased this cycle as its 14.4% annual revenue growth over the last five years was exceptional
- Sales pipeline is in good shape as its backlog averaged 12.7% growth over the past two years
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 25.1% annually, topping its revenue gains
Gorman-Rupp is trading at $60.80 per share, or 26.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Magnite (MGNI)
Market Cap: $1.88 billion
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Why Is MGNI a Top Pick?
- Annual revenue growth of 26.4% over the past five years was outstanding, reflecting market share gains this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Historical investments are beginning to pay off as its returns on capital are growing
Magnite’s stock price of $13.02 implies a valuation ratio of 12.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 meeting near-term momentum — both boxes checked at the same time.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
