Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Russell 2000 Stocks Walking a Fine Line

ALTG Cover Image

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.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. Keeping that in mind, here are three Russell 2000 stocks to steer clear of and some alternatives to watch instead.

Alta (ALTG)

Market Cap: $198.2 million

Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Why Do We Steer Clear of ALTG?

  1. Muted 5.8% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Alta’s stock price of $5.97 implies a valuation ratio of 1.1x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why ALTG doesn’t pass our bar.

Enpro (NPO)

Market Cap: $3.91 billion

Holding a Guinness World Record for creating the world's largest gasket, Enpro (NYSE: NPO) designs, manufactures, and sells products used for machinery in various industries.

Why Are We Cautious About NPO?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.1% annually over the last five years
  2. Earnings per share have dipped by 2.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
  3. Underwhelming 6.7% return on capital reflects management’s difficulties in finding profitable growth opportunities

Enpro is trading at $185.86 per share, or 24x forward P/E. Read our free research report to see why you should think twice about including NPO in your portfolio.

REV Group (REVG)

Market Cap: $2.17 billion

Offering the first full-electric North American fire truck, REV (NYSE: REVG) manufactures and sells specialty vehicles.

Why Are We Wary of REVG?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
  2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 12%
  3. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

At $44.39 per share, REV Group trades at 15.9x forward P/E. Dive into our free research report to see why there are better opportunities than REVG.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 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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