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.
Finding these rising stars before they break out isn’t easy, which is why we started StockStory. That said, here are three Russell 2000 stocks that could be the next big thing.
Montrose (MEG)
Market Cap: $784.5 million
Founded to protect a tree-lined two-lane road, Montrose (NYSE: MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Why Does MEG Stand Out?
- Impressive 17.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 109% annually
- Free cash flow margin increased by 6.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Montrose’s stock price of $22.19 implies a valuation ratio of 17.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
iRhythm (IRTC)
Market Cap: $4.8 billion
Pioneering the shift from bulky, short-term heart monitors to sleek, wire-free patches, iRhythm Technologies (NASDAQ: IRTC) provides wearable cardiac monitoring devices and AI-powered analysis services that help physicians detect and diagnose heart rhythm disorders.
Why Do We Like IRTC?
- Market share has increased this cycle as its 23.4% annual revenue growth over the last five years was exceptional
- Adjusted operating margin improvement of 17.1 percentage points over the last five years demonstrates its ability to scale efficiently
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test
iRhythm is trading at $148.42 per share, or 56.8x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
StepStone Group (STEP)
Market Cap: $5.64 billion
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ: STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
Why Will STEP Outperform?
- Annual revenue growth of 32.5% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 41.4% over the last two years outstripped its revenue performance
At $71.36 per share, StepStone Group trades at 31.9x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
