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 struggle to keep up.
Two Stocks to Sell:
Progyny (PGNY)
Market Cap: $1.94 billion
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Does PGNY Fall Short?
- Revenue base of $1.24 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its two-year trend
- Underwhelming 0.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
Progyny is trading at $22.03 per share, or 13.4x forward P/E. To fully understand why you should be careful with PGNY, check out our full research report (it’s free).
Seacoast Banking (SBCF)
Market Cap: $2.56 billion
Founded during the Florida land boom of 1926 and surviving the Great Depression, Seacoast Banking Corporation of Florida (NASDAQ: SBCF) is a financial holding company that provides commercial and retail banking, wealth management, and mortgage services throughout Florida.
Why Does SBCF Give Us Pause?
- Sales trends were unexciting over the last two years as its 1% annual growth was below the typical banking company
- Capital trends were unexciting over the last five years as its 2.8% annual tangible book value per share growth was below the typical banking firm
- Projected tangible book value per share decline of 7% for the next 12 months points to tough credit quality challenges ahead
Seacoast Banking’s stock price of $29.48 implies a valuation ratio of 1.1x forward P/B. Read our free research report to see why you should think twice about including SBCF in your portfolio.
One Stock to Buy:
Oscar Health (OSCR)
Market Cap: $3.94 billion
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Are We Backing OSCR?
- Impressive 37.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Earnings per share grew by 19.3% annually over the last four years, massively outpacing its peers
At $15.27 per share, Oscar Health trades at 72.5x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
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 Comfort Systems (+782% 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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