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.

Picking the right small caps isn’t easy, and that’s exactly why StockStory exists - to help you focus on the best opportunities. That said, here is one Russell 2000 stock that could be the next big thing and two best left off your watchlist.

Two Stocks to Sell:

Nature's Sunshine (NATR)

Market Cap: $360.1 million

Started on a kitchen table in Utah, Nature’s Sunshine (NASDAQ: NATR) manufactures and sells nutritional and personal care products.

Why Do We Think Twice About NATR?

1. 2.8% annual revenue growth over the last three years was slower than its consumer staples peers
2. Modest revenue base of $474.5 million gives it less fixed cost leverage and fewer distribution channels than larger companies
3. Estimated sales growth of 3.1% for the next 12 months is soft and implies weaker demand

At $20.58 per share, Nature's Sunshine trades at 22.2x forward P/E. Dive into our free research report to see why there are better opportunities than NATR.

L.B. Foster (FSTR)

Market Cap: $280.4 million

Founded with a $2,500 loan, L.B. Foster (NASDAQ: FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.

Why Is FSTR Not Exciting?

1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
2. Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
3. Low returns on capital reflect management’s struggle to allocate funds effectively

L.B. Foster is trading at $26.98 per share, or 6.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including FSTR in your portfolio.

One Stock to Watch:

John Bean (JBTM)

Market Cap: $7.30 billion

Tracing back to its invention of the mechanical milk bottle filler in 1884, John Bean (NYSE: JBT) designs, manufactures, and sells equipment used for food processing and aviation.

Why Could JBTM Be a Winner?

1. Market share has increased this cycle as its 40% annual revenue growth over the last two years was exceptional
2. Notable projected revenue growth of 21.1% for the next 12 months hints at market share gains
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 16.3% annually

John Bean’s stock price of $140.68 implies a valuation ratio of 18.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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