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. Keeping that in mind, here is one Russell 2000 stock that could be the next big thing and two that may struggle to keep up.
Two Stocks to Sell:
EverQuote (EVER)
Market Cap: $815 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 Do We Think Twice About EVER?
- Excessive marketing spend signals little organic demand and traction for its platform
EverQuote is trading at $22.76 per share, or 9.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EVER.
Hudson Technologies (HDSN)
Market Cap: $403.5 million
Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Why Are We Cautious About HDSN?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 14.1% annually over the last two years
- Earnings per share have contracted by 46.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Eroding returns on capital suggest its historical profit centers are aging
At $9.25 per share, Hudson Technologies trades at 10.3x forward EV-to-EBITDA. If you’re considering HDSN for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
P10 (PX)
Market Cap: $1.20 billion
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Why Do We Like PX?
- Impressive 41.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings per share grew by 36.5% annually over the last three years and trumped its peers
P10’s stock price of $10.93 implies a valuation ratio of 11.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
