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3 Russell 2000 Stocks with Competitive Advantages

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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. Keeping that in mind, here are three Russell 2000 stocks that could deliver strong gains.

Maximus (MMS)

Market Cap: $4.09 billion

With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE: MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.

Why Are We Positive On MMS?

  1. Solid 8.4% annual revenue growth over the last five years indicates its offering’s solve complex business issues
  2. Economies of scale give it more fixed cost leverage than its smaller competitors
  3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 30.7% exceeded its revenue gains over the last two years

Maximus’s stock price of $74.89 implies a valuation ratio of 8.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

QuinStreet (QNST)

Market Cap: $655.4 million

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

Why Is QNST a Good Business?

  1. Market share has increased this cycle as its 41.8% annual revenue growth over the last two years was exceptional
  2. Earnings per share have massively outperformed its peers over the last two years, increasing by 454% annually
  3. Improving returns on capital suggest its past investments are beginning to deliver value

At $11.68 per share, QuinStreet trades at 7.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Skyward Specialty Insurance (SKWD)

Market Cap: $2.02 billion

Founded in 2006 to serve markets where standard insurance coverage falls short, Skyward Specialty Insurance (NASDAQ: SKWD) provides customized commercial property, casualty, and health insurance solutions for underserved or specialized market niches.

Why Is SKWD a Top Pick?

  1. Market penetration was impressive this cycle as its net premiums earned expanded by 26.6% annually over the last two years
  2. Balance sheet strength has increased this cycle as its 29.3% annual book value per share growth over the last two years was exceptional
  3. Capital strength will likely rise over the next 12 months as its expected book value per share growth of 22.4% is robust

Skyward Specialty Insurance is trading at $45.83 per share, or 1.9x forward P/B. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

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