Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names. But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.

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 is one Russell 2000 stock that could deliver strong gains and two that may face some trouble.

Two Stocks to Sell:

Janus (JBI)

Market Cap: $873.2 million

Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.

Why Is JBI Not Exciting?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Forecasted revenue decline of 1.2% for the upcoming 12 months implies demand will fall even further
3. Earnings per share have contracted by 21.6% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Janus is trading at $6.36 per share, or 9.5x forward P/E. Check out our free in-depth research report to learn more about why JBI doesn’t pass our bar.

AMN Healthcare Services (AMN)

Market Cap: $647.3 million

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Do We Pass on AMN?

1. Declining travelers on assignment over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Earnings per share have contracted by 10.5% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $16.85 per share, AMN Healthcare Services trades at 19.1x forward P/E. Dive into our free research report to see why there are better opportunities than AMN.

One Stock to Buy:

First BanCorp (FBP)

Market Cap: $3.19 billion

Tracing its roots back to 1948 in San Juan, First BanCorp (NYSE: FBP) is a bank holding company that provides commercial banking, consumer financing, mortgage services, and insurance products across Puerto Rico, the U.S. mainland, and the Caribbean.

Why Will FBP Beat the Market?

1. 8.1% annual revenue growth over the last five years surpassed the sector average as its loans resonated with customers
2. Differentiated product suite results in a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds result in a best-in-class net interest margin of 4.5%
3. Share repurchases over the last two years enabled its annual earnings per share growth of 12.1% to outpace its revenue gains

First BanCorp’s stock price of $20.33 implies a valuation ratio of 1.6x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at 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

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