- While major US stock indexes focus on large-cap companies, the Russell 2000 offers insight into the health of small-cap businesses.
- The Russell 2000 is significant as it comprises small companies that provide a unique perspective on the nation's economic well-being.
- In this piece, we will examine five highly rated stocks within the Russell 2000.
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- Size: The market capitalization of the company seeking entry must exceed $30 million.
- Liquidity: The company must have a daily average trading volume of at least $130,000.
- Float: The float, representing the available outstanding shares for purchase, must be greater than 5% of the total shares in the market.
The three main stock market indexes in the country, the S&P 500, Dow Jones Industrial Average, and Nasdaq, primarily include large-cap companies. However, there are also other indexes composed of small-cap companies, such as the S&P 600 and the Russell 2000.
The Russell 2000 holds particular significance because small companies within it often provide a more accurate reflection of the country's economic health.
These businesses focus on internal and domestic operations, primarily within the US.
To be included in the Russell 2000, companies must meet three requirements:
Small market capitalization companies, commonly referred to as small caps, fall within the $300 million to $2 billion market cap range.
Those above $2 billion are considered medium caps, and the largest are known as large caps or big caps.
Investors interested in small-cap stocks can choose from various specialized vehicles, including mutual funds and ETFs.
But in this piece, we will take a look at five stocks within the Russell 2000 that are highly rated by the market, and we will utilize InvestingPro as our primary source of information.
1. Karyopharm Therapeutics
Karyopharm Therapeutics (NASDAQ:KPTI) is a pharmaceutical company that develops and markets drugs aimed at treating cancer and other diseases.
The company was incorporated in 2008 and is headquartered in Newton, Massachusetts.
It reports quarterly results on February 15. Looking ahead to 2024 the forecast is for earnings per share (EPS) to increase +6.6%, with the increase being +19.3% by 2025.
Source: InvestingPro
Its shares closed the week at $1.04. The potential the market gives it is tremendous, at no less than around $6.
Source: InvestingPro
2. Rallybio
Rallybio (NASDAQ:RLYB) is a biotech company that is dedicated to developing life-transforming therapies for patients suffering from serious and rare diseases. It was founded in 2018 and is based in New Haven, Connecticut.
On March 12, we will know its accounts for the quarter. The forecast is that in the computation of 2023, it will have increased its earnings per share (EPS) by +13.4%.
Source: InvestingPro
In 2023 some of their research passed phase 1 and now in 2024, they expect everything to go well and achieve important milestones.
Its shares closed the week at $1.31. The potential the market gives it is stratospheric at $13.80.
Source: InvestingPro
3. Vor Biopharma
Vor Biopharma (NASDAQ:VOR) is engaged in the development of engineered stem cell therapies for cancer patients. The company was formed in 2015 and is based in Cambridge, Massachusetts.
It will release its numbers for the quarter on March 21 and is expected to increase earnings per share (EPS) by +15.74% and end 2023 on its computation with an increase of +20.9%.
Source: InvestingPro
Its shares closed the week at $2.22. The potential given by the market stands at $15.07.
Source: InvestingPro
4. Tenaya Therapeutics
Tenaya Therapeutics (NASDAQ:TNYA) is a biotechnology company that develops and offers therapies for heart disease. It was incorporated in 2016 and is headquartered in South San Francisco, California.
On March 20 turn for quarter accounts with a forecast of an earnings per share (EPS) increase of +49.59%.
Source: InvestingPro
It presents 7 ratings, of which all are buy.
Its shares closed the week at $4.55. The potential given by the market stands at $19.14.
Source: InvestingPro
5. Compass Therapeutics
Compass Therapeutics (NASDAQ:CMPX) is a biopharmaceutical company engaged in the development of antibody-based therapeutics to treat various diseases. It was founded in 2014 and is based in Boston, Massachusetts.
On March 1, we will get the quarterly numbers, and they're expected to show an increase in earnings per share (EPS) of +37.14%.
Source: InvestingPro
Its shares closed the week at $1.22. The potential given by the market stands at $9.40.
Source: InvestingPro
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.